Bank Indonesia keeps burden-sharing scheme


Still needed: Traffic in front of the BI headquarters in Jakarta. Introduced as a crisis response in 2020, the burden-sharing scheme remains in place, long after the Covid-19 pandemic has ended. — Bloomberg

JAKARTA: The central bank has announced a continuation of its burden-sharing scheme with the government and has purchased trillions of rupiah worth of government bonds this year, but an economist has questioned the legal basis for continuing a policy initially intended as a crisis response.

Speaking at an online meeting before Committee IV of the Regional Representatives Council on Tuesday, Bank Indonesia (BI) governor Perry Warjiyo revealed that BI has purchased 198 trillion rupiah worth of government bonds so far this year, including 12 trillion rupiah since Aug 19.

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