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JAKARTA – Indonesia's central bank governor and finance minister have reached an agreement to enhance yields on Indonesian assets, a move designed to attract portfolio investments and bolster the rupiah, according to a statement released on Saturday.

Bank Indonesia Governor Perry Warjiyo and Finance Minister Sri Mulyani Indrawati discussed strategies to strengthen the rupiah amidst ongoing market volatility. The focus is on making Indonesian assets more appealing to foreign investors by increasing their returns.

The rupiah has faced depreciation pressures recently, influenced by factors such as global economic uncertainty and shifts in investor sentiment. Increasing asset yields is a common tactic employed by central banks to attract foreign capital, which can then help stabilize and strengthen the local currency.

While the specific measures to be implemented to boost yields were not detailed in the initial announcement, analysts suggest potential options could include adjustments to government bond yields or other investment instruments. Further details are expected to be released in the coming days.

This collaborative effort between the central bank and the finance ministry underscores the Indonesian government's commitment to maintaining macroeconomic stability and managing the exchange rate effectively. The success of this strategy will depend on various factors, including global market conditions and investor confidence in the Indonesian economy.