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Subsidies and additional policy decisions by Bank Indonesia have increased pressure on the rupiah and shaken market sentiment. Also, no more than 25% of total investment can be placed in any one party other than in marketable securities issued or guaranteed by the Indonesian government or Certificate of Bank Indonesia. Given that the latter is now expressly proscribed by the new Bank Indonesia Act, which prevents the central bank from underwriting government debt, some form of restructuring is required. |
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