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Jakarta Post

Bonds to help RI businesses affected by COVID-19

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Fri, March 27 2020   /  12:50 am

Indonesia is planning to offer government debt papers to the market, the proceeds of which would be used to fund programs that rescue businesses suffering from COVID-19 and prevent layoffs.

Office of the Coordinating Economic Minister secretary Susiwijono Moegiarso said Thursday the government would issue a regulation in lieu of law (Perppu) on Friday to facilitate the plan.

The so-called “recovery bond” can be bought by Bank Indonesia (BI), as well as exporters and importers, Susiwijono said, adding the Perppu would enable the central bank to buy government bonds not only in the secondary market. The existing law on BI prohibits the central bank from buying government bonds except in the secondary market.

“The government will handle the proceeds of the funds to finance all businesses. This is to awaken business activities,” Susiwijono said during a media bri...