Bank Indonesia to buy $28 billion of government debt

Central bank increases direct financing of government, raising fears over currency and independence

Perry Warjiyo
Bank Indonesia governor Perry Warjiyo

Indonesia’s central bank will buy $28 billion worth of newly issued government bonds on the primary market, it announced on July 6.

Finance minister Sri Mulyani Indrawati and Bank Indonesia governor Perry Warjiyo announced the new measure in a joint teleconference. It is not yet clear when the debt will be issued or what term the bonds will have.

The central bank will buy 397 trillion rupiah ($28 billion), or 70% of a new $40 billion financing scheme, both officials said. They also said Bank

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