Jakarta, May 6 -- Finance Minister Purbaya Yudhi Sadewa plans to reactivate a bond stabilization fund as the Indonesian government is struggling to stabilize the rupiah.

"In the government, we have bond stabilization fund, which is owned by several parties," Purbaya told reporters in Jakarta on Wednesday.

This fund is being prepared to stabilize the bond market by buying back government securities (SBN) released by investors on the secondary market.

This strategy is being implemented to maintain stable government bond yields, so that foreign investors holding debt securities do not incur capital losses.

However, the fund prepared by Purbaya has a different framework than the bond stabilization framework maintained by the Financial Sys...