In June, it tumbled 19.98 trillion rupiah in the general sell-off in emerging market assets after the US Federal Reserve hinted at easing back on its multi-year ultra-loose monetary policy. Still, foreigners hold more than 30 percent of outstanding Indonesian government debt.

 

The Fed shocked markets and sparked a rally in emerging market assets last week when it failed to announce an anticipated reduction in its massive monthly asset purchases.

 

In the last two auctions in September, the finance ministry sold a total of Rp 24 trillion in bonds. The weighted-average yield for its 11-year bonds in the latest auction on Tuesday was up more than 110 basis points to 8.04968 percent.

 

The country expects to see lower inflation or disinflation in September as the impact of a fuel price hike in late June gradually dissipates.

The annual consumer price index in August hit a nearly 4-1/2-year high of 8.79 percent.