"We have intervened since September to make the price of state securities (SBN) not to drop sharply to make our financial system remain stable," the central bank`s governor, Darmin Nasution, said in a Financial Lecture: Post-Investment Grade at Ritz Carlton Hotel here on Wednesday.
He admitted that BI had so far still focussed on the short-and medium-term SBN market but in line with increasing competition it would be impossible for it to remain in the market.
"Based on the conditions BI now wishes to study the possibility of buying long-term SBN," he said.
He hoped the move would bring BI out of the short-and medium-term SBN market that has been crowded.
"We wish to settle bonds recap in several banks in the country to make the banks more efficient," he said.
Darmin said if banks in Indonesia are more efficient they can lend money at a cheaper interest.
(SYS/H-YH/S012)
Editor: Suryanto
Copyright © ANTARA 2012
