US Boosts Bond Buybacks, Indonesia Says It Is Following Its Lead
Indonesia says the US move to double bond buybacks validates its own strategy to maintain market liquidity and support financial stability.
Jakarta - Indonesia's Finance Minister Purbaya Yudhi Sadewa has welcomed the United States government's decision to double its bond buybacks, stating it reinforces Indonesia's own policy. The US move showcased Indonesia's policy as an internationally recognized approach to market liquidity, suggesting possibly reciprocation from America, Purbaya said after a meeting with Indonesia's DPR Budget Committee.
Indonesia's bond buyback program, conducted by the Finance Ministry's DJPPR, aims to maintain liquidity in the financial system. Similar to the US move, Purbaya stated, the goal is to prevent liquidity disruptions in the economy. The US Treasury Department increased the maximum amount of debt it could buy back to at least US$4 billion from the previous US$2 billion, a move aimed at easing pressure and controlling yields on longer-term bonds.
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