Indonesia's Central Bank Plans 30% Increase in Repo Deals in the Current Year

Indonesia’s central bank aims to increase repurchase agreements between commercial banks by 30% this year to 1,026 deals after 76 banks signed a repo master agreement on Monday, its deputy governor said.

An increase in repo transactions would deepen the financial market and help banks manage short-term liquidity issues in Southeast Asia’s largest economy, Destry Damayanti, senior deputy governor of Bank Indonesia said in a speech at the signing ceremony.

“We want to deepen our financial market, so that it won’t be too volatile when global turmoil happens,” she said.

Most interbank transactions currently are in the unsecured overnight market.

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