Indonesia's central bank may start buying new government bonds in two weeks: report

[JAKARTA] Indonesia's central bank will be prepared to buy government bonds in the primary market in two weeks, governor Perry Warjiyo told reporters on Friday, but reiterated that Bank Indonesia (BI) will buy bonds only as a last resort.

BI and the government is currently smoothing out the technicalities for the policy, announced earlier this month, as the government braces for higher fiscal deficit amid spending expansion for coronavirus response.

Mr Warjiyo said the central bank will only be allowed to buy 25 per cent of the targeted amount in each auction. The finance ministry will hold weekly auctions for rupiah debt sales.

REUTERS