Financial Times FT.com

Indonesia rolls out rescue package

By John Aglionby in Jakarta

Published: October 29 2008 03:19 | Last updated: October 29 2008 03:19

The Indonesian government and central bank on Tuesday night unveiled an emergency 10-point package to “protect the stability of the financial system and national economy” in response to increasing pressure on the country’s battered currency and stock market.

Sri Mulyani Indrawati, the finance minister, said the government and Bank Indonesia would start buying back government bonds on Wednesday. In addition, state-owned enterprises have been told to repatriate their foreign currency earnings while the authorities will exercise bilateral currency swap arrangements with the central banks of China, Japan and South Korea if necessary.

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