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Bank Indonesia Buys $4 Billion of Bonds in Debt Monetization

The entrance to the Bank Indonesia headquarters in Jakarta, Indonesia.

The entrance to the Bank Indonesia headquarters in Jakarta, Indonesia.

Photographer: Dimas Ardian/Bloomberg

Indonesia’s central bank bought 58 trillion rupiah ($4 billion) of government bonds, the first transaction in its latest round of debt monetization.

Bank Indonesia purchased 14.5 trillion rupiah each of four series of notes due in five to eight years via a private placement, the finance ministry’s debt management office said on Tuesday. Future bond-buying by the central bank will be done gradually, in line with the government’s need to fund its pandemic stimulus, the office said in a statement Tuesday.