BI says short-term bills purchased due to lack of instruments

The central bank says many foreign players still buy its short-term bills because Indonesia has less money market instruments.

Critics have said high foreign ownership in Bank Indonesia (BI) bills may contribute to the volatile rupiah against the US dollar as foreign players can sell the bills and leave.

"If there are medium- and long-term instruments, I think investors will shift (their funds) without being asked," BI deputy governor Hartadi A. Sarwono said in a seminar on economic outlook at BI.