Indonesia beefs up central bank’s powers to handle virus crisis

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JAKARTA: Besieged by the worst turmoil since the Asian financial crisis more than two decades ago, Indonesia has given its central bank unprecedented powers to shield the economy from the fallout of the Covid-19 (coronavirus) pandemic on Friday (April 3).

The government has already cut its growth forecast by more than half and unveiled $25 billion in fiscal support to cushion the economic blow. Now Bank Indonesia will be allowed to buy sovereign bonds in the primary market and extend a lifeline to banks in the event of insolvency.