Bank Indonesia sells SBI debt

JAKARTA: Indonesia's central bank sold its nine-month SBI debt on Thursday at a 5.03858 percent rate, lower than 5.22412 percent in last month's auction, absorbing liquidity more than expected.

Bank Indonesia (BI) also sold its nine-month sharia SBI debt at the same rate. It sold 27.29 trillion rupiah ($3.02 billion) of SBIs and 382 billion rupiah of sharia SBIs.

BI kept its benchmark overnight rate at a record low 6 percent on Thursday as anticipated, pausing because it expects recent rate cuts to help to stimulate the domestic economy next year as global growth slows.

The central bank has tried to discourage foreign investors from investing in SBIs as a reversal may hurt the rupiah currency. Foreigners have sold off their SBI holdings since BI required SBI buyers from May to hold the debt for at least six months or risk a penalty.

Foreign ownership in SBIs stood at 15.5 percent as of November, down from 38.9 percent in May, BI data

Source: EconomicTimes