JAKARTA - Indonesia's state-owned companies are set to act as standby buyers for the government's bonds, a move aimed at avoiding a sharp drop in prices should recent robust capital inflows into the assets reverse, senior officials said Tuesday.
“We've signed an MoU with the Ministry of State Enterprises today,“ Rahmat Waluyanto, the director general of the debt management office at the finance ministry, said, adding the state-owned companies “should see this as an investment, as they can buy at low prices and receive gains.“
Parikesit Suprapto, the deputy for the services industry at the State Enterprises Ministry, told reporters that under the agreement, 13 state-controlled firms--including four banks and seven insurance firms--will become standby buyers.
The move comes as Indonesia's financial markets have been flooded with foreign capital, with non-residents currently holding around 30% of local government bonds.
source : kompas.com
