JAKARTA, June 29 (Reuters) – Indonesia’s financing minister said on Monday the federal government may offer more bonds to the central bank to finance its COVID-19 action, including some that would carry no yield, through personal positioning.
Bank Indonesia (BI) might bear 100%of the rate of interest burden to finance some government programs that were considered public goods, like health spending, social security and assistance for local government budget plans, in overall amounting to 397 trillion rupiah ($28 billion), Finance Minister Sri Mulyani Indrawati informed parliament.
BI may likewise finance non-public items programmes by purchasing bonds that carry a discount coupon rate of one portion point below its benchmark rate, Indrawati said, including that she and BI Governor Perry Warjiyo were still discussing the amount to offer to the reserve bank and to the marketplace.
Warjiyo, who was likewise at the hearing, restated BI was all set to “share the problem” and said both sides would ensure excellent governance. ($ 1=14,1700000 rupiah) (Reporting by Gayatri Suroyo and Tabita Diela; Modifying by Martin Petty)
Reuters.
