Indonesia govt issues 'pandemic bonds'

  • Indonesia
  • Tuesday, 07 Apr 2020

JAKARTA: Indonesia will issue some US$27bil in so-called "Pandemic bonds" to finance efforts to deal with the health crisis and economic impact due to the Covid-19 (coronavirus) outbreak, the government announced on Tuesday (April 7).

Factory activity in South-East Asia's biggest economy hit a record low, with Japanese automakers Suzuki and Honda becoming the latest firms to announce temporary production suspensions at their plants in the archipelago.

The government has slashed annual growth projections and warned the economy could even contract in a worst-case scenario.

It will spend an extra US$25bil to mitigate the economic impact of the virus.

Meanwhile, the rupiah earlier dropped to a near-record low and is one of Asia's worst-hit currencies.

Earlier on the day, the Asian equities rose again as investors seized on signs of a slowdown in the spread of the coronavirus in key hotspots and some governments began making plans to ease restrictions aimed at containing the disease.

Meanwhile, citizens in Indonesia's Padang city on Sumatra island face a unique punishment if they go out in public unmasked.

Violators must produce -- with the help of an online instructional video should they need it -- two cloth masks as a fine, one for themselves and another for a person in need. - AFP
Article type: free
User access status:

Did you find this article insightful?


100% readers found this article insightful

Across The Star Online