Indonesia's central bank purchases state securities worth 24.2 bln USD

Source: Xinhua| 2020-11-20 19:35:03|Editor: huaxia

JAKARTA, Nov. 19 (Xinhua) -- Indonesia's central bank Bank Indonesia, has bought state securities issued by the government worth about 24.2 billion U.S. dollars through a direct market mechanism in support of the state budget for financing the national economic recovery program.

"The measure was taken as an effort to support the acceleration of the national economic recovery program while maintaining the macroeconomic stability," Bank Indonesia Governor Perry Warjiyo said after attending the meeting of the central bank's board of governors here.

Warjiyo said that the central bank had purchased state securities on the primary market through a market mechanism worth some 5.1 billion U.S. dollars on April 16, 2020.

Then, Bank Indonesia bought the state securities through a direct mechanism on July 7, 2020, amounting to some 19.07 billion U.S. dollars.

The government has allocated budget ceiling of 49.09 billion U.S. dollars for the national economic recovery program which resulted in the 2020 state budget deficit widening to 6.34 percent.

Of the amount, till November 9, 2020, the use of the state budget for the national economic recovery program reached 27.04 billion U.S. dollars or about 55.1 percent of the budged ceiling. Enditem