Bank Indonesia buys longer-dated government bonds to stabilise market, traders say

General

Bank Indonesia buys longer-dated government bonds to stabilise market, traders say

ReutersLast Updated: Sep 09, 2025, 11:29:00 AM IST

Synopsis

Bank Indonesia acted to stabilise markets. This followed the unexpected removal of Finance Minister Sri Mulyani Indrawati. The move triggered a selloff in the Rupiah and Indonesian bonds. Bank Indonesia bought longer-dated government bonds. They also intervened in the foreign exchange market. This was to ensure the Rupiah’s exchange rate aligned with fundamentals. The interventions aimed to calm investor concerns.

general Bank Indonesia buys longer-dated government bonds to stabilise market, traders say — Bank Indonesia intervened in both the bond and foreign exchange markets on Tuesday to stabilize the financial situation.

Bank Indonesia was seen buying longer-dated government bonds on Tuesday in an attempt to stabilise the market, according to two traders.

The move came after Indonesia’s abrupt removal of its influential Finance Minister Sri Mulyani Indrawati on Monday stunned markets, sparking a sharp selloff in the rupiah and the country’s bonds on Tuesday.

BI earlier on Tuesday also said it had intervened in the foreign exchange market to ensure that the rupiah exchange rate moves in line with its fundamentals.

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