Of the total figure, the central bank has bought Rp 51.17 trillion worth of sovereign debt papers (SBNs) through auctions, as well as another Rp 183.48 trillion through private placement as of Sept. 15, BI Governor Perry Warjiyo said during a meeting with House of Representatives Commission XI overseeing financial affairs on Monday.

On that basis, BI currently owns Rp 640.6 trillion worth of SBNs.

“This is our commitment to support the economy through financing measures and bearing the debt burden so that the government can focus on spending the state budget,” Perry told the lawmakers, stressing that the central bank would continue buying government bonds through the scheme.

The government and the central bank have agreed on a $40 billion debt monetization scheme, dubbed “burden sharing”, which will see BI buying at least $28 billion in government bonds while shouldering the debt costs.

The coronavirus-induced economic downturn has sapped tax revenue, spurred government spending and necessitated record amounts of government borrowing as the country’s budget deficit may widen to 6.34 percent of gross domestic product (GDP), more than twice the initial deficit cap of 3 percent.

The government, however, has only spent around 36 percent of the Rp 695.2 trillion stimulus it allocated to help the economy due to red-tape, among other issues.

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