Indonesia Passes Law on Crisis Bond-Buying by Central Bank
- Central bank tasked with funding state debt during crisis
- Economic growth in mandate may lead to more dovishness: ING
The Bank Indonesia headquarters in Jakarta.
Photographer: Rony Zakaria/BloombergThis article is for subscribers only.
Indonesia’s parliament passed a law tasking the central bank to directly finance the budget in times of crisis, just as it had been doing since the pandemic, as part of a broader revamp of financial sector rules.
Lawmakers approved on Thursday the legislation covering hundreds of provisions related to the central bank, the capital markets, pensions and digital money. President Joko Widodo, popularly known as Jokowi, is expected to sign it into law within 30 days.