JAKARTA -- Recent legislation allowing Indonesia's central bank to buy bonds directly from the government in a crisis is raising concerns about the damage it could deal to central bank independence and fiscal discipline.
Fears arise that government could arbitrarily declare crisis to monetize debt
Bank Indonesia Gov. Perry Warjiyo speaks to central bank stakeholders at an annual meeting in November. © Reuters
JAKARTA -- Recent legislation allowing Indonesia's central bank to buy bonds directly from the government in a crisis is raising concerns about the damage it could deal to central bank independence and fiscal discipline.