The Bank Indonesia intends to buy back directly sovereign bonds
The Bank Indonesia intends to buy back directly sovereign bonds of up to Rs 439 trillion ($30.5 billion) in 2021 and 2022 under a new agreement with the Ministry of Finance.
The proceeds, up to Rs 215 trillion for 2021 and RS 224 trillion in 2022, will be used to fund the government’s vaccination campaign and other COVID-19 relief measures.
The Bank will cancel interest payments for bonds of Rs 58 trillion in 2021 and Rs 40 trillion in 2022, but the rest of the notes will carry a floating interest rate equal to the central bank’s three-month reverse repo rate.
Full nameMinistry of Finance of Republic of Indonesia