Indonesian Finance Minister Sri Mulyani Indrawati said on Monday, that the central bank, Bank Indonesia, may bear 100% of the burden for public goods financing such as health spending.
“The central bank may take govt bonds with an interest rate of 1% point below the benchmark rate to fund non-public goods govt spending.”
“Still calculating how much the central bank will be asked to buy bonds, how much to raise from the market.”
Meanwhile, the central bank Governor Perry Warijyo said that they will ensure good governance in Bank Indonesia’s agreement with the finance ministry.
USD/IDR challenges four-day highs
more to come …