Indonesia's central bank increased its purchases of government bonds in the secondary market in September 2026 to inject liquidity into the financial system, amid efforts to balance safeguarding the stability of the rupiah and supporting economic growth. Erwin Gunawan Hutapea, head of the central bank's financial management department, disclosed that from the start of the year through the end of September, the central bank had purchased nearly 300 trillion rupiah worth of government bonds, or approximately 16.79 billion US dollars, covering both short-term treasury bills in the primary market and longer-dated bonds in the secondary market. Since July 21, the central bank has spent more than 110 trillion rupiah on additional government bond purchases, up from cumulative purchases of 188.7 trillion rupiah at that time. However, after Perry Warjiyo, governor of Indonesia's central bank, resigned abruptly in late July, the central bank did not disclose the volume of its government bond purchases in the monetary policy statement published after the monthly board meeting. Previously, Indonesia's central bank raised its policy interest rate by a total of 100 basis points between May and June to counter pressure from the depreciation of the rupiah, but it still affirmed that it would keep domestic liquidity at a sufficient level to support economic growth.
Central bank bond purchases inject rupiah liquidity and it has raised rates to counter rupiah depreciation, supporting IDR over USD.
