Central Banking

Govt fails to reach crucial deal with central bank

The Indonesia government failed on Thursday to reach a final agreement on a plan to recapitalise the central bank. Director general of financial institutions Darmin Nasution said the government and Bank Indonesia could not yet agree on their respective shares of the disputed Rp 144.5 trillion in emergency loans extended to commercial banks between late 1997 and early 1999.

"We can't announce the final agreement tomorrow as scheduled. We'll ask (the House of Representatives) for more time," Dar