Jakarta urges China's central bank to buy Indonesian bonds
[JAKARTA] Indonesia has asked China's central bank to start purchasing Indonesian bonds as part of an effort to attract more long-term investors to Southeast Asia's largest economy, a senior government official said on Friday.
Indonesia, which is running a current account deficit, is considered vulnerable to capital outflows when US interest rates rise, as foreigners account for nearly 40 per cent of the country's outstanding government bonds.
"We are offering our bonds to China's central bank," Indonesia's Finance Minister Bambang Brodjenogoro told reporters. "If central banks hold our bonds ... they are not as speculative. They invest for the long term."
The People's Bank of China does not currently hold any Indonesian government bonds, he said.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Eurozone business in services-led bounce in April, PMI survey shows
China’s surging steel exports are inflaming global trade tension
German business activity returns to growth in April, PMI survey shows
China’s LGFV borrowing costs drop to record low as investors bet on bailout
UK budget deficit overshoots in setback for Hunt’s tax cut plans
BOJ will hike rates if trend inflation accelerates, says Ueda