Indonesia’s central bank is strengthening its monetary operations by selling government bonds in secondary markets to absorb excess liquidity. On Monday, the central bank sold 390bln rupiah worth of debt in an outright transaction. More bond sales are planned in the near future to support the normalization of rupiah liquidity. The bond sales mark the first time that the central bank is selling such holdings since taking on an ultra-easy monetary policy during the pandemic, which resulted in 150bps interest-rate cuts and more than 985tln rupiah in debt purchases in 2021.