The Indonesian government is planning to help support the rupiah by investing 2 trillion rupiah a day into the domestic bond market, the Jakarta Globe reported Monday, citing Finance Minister Purbaya Yudho Sadewa.
The injections will be funded through cash management by the government rather than new budget allocations, Purbaya reportedly said after a limited cabinet meeting with President Prabowo Subianto at the State Palace in Jakarta.
The government has up to 420 trillion rupiah available to pump into the bond market and believes the interventions will help the currency stabilize this week, Purbaya added.
The move will help maintain bond prices in Indonesia and prevent foreign investors from moving funds overseas, the report said, citing Purbaya.
A wider strategy to strengthen the rupiah is also expected to be present by President Prabowo before the House of Representatives soon.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)