Indonesia’s central bank allowed to buy gov’t bonds worth over 16 billion USD hinh anh 1(Photo:
Jakarta (VNA) - Indonesia’s central bank has obtained permission to purchase about 42,000 billion rupiah (166.33 billion USD) worth of government bonds in the primary market in 2020, said Finance Minister Sri Mulyani Indrawati. 

She told House of Representatives Commission XI overseeing financial affairs that the BI may absorb 25 percent of government bonds issued in the year. 

Earlier, the Indonesian government said it will upsize the bond issuance to finance the 2020 budget deficit.

Indonesia also widened the budget deficit to a record-high 5.07 percent of GDP while the country’s finance ministry looked for other sources to improve the national budget. 

On May 6, Indonesian President Joko Widodo asked ministers to concentrate on efforts to control COVID-19 and its impact on the economy during a cabinet meeting.

He also ordered ministers to ensure economic stimulus went to sectors that had suffered the greatest contraction./.