The Indonesian central bank will increase government deposit interest as a way to "share the burden" for fiscal projects.

The Indonesian central bank has stated that it has reached an agreement with the government on a so-called "burden-sharing" arrangement, where the central bank will increase the interest on government deposits to help the finance ministry raise funds for its programs. In a statement on Thursday, the Indonesian central bank said that this arrangement aims to help the government cover the costs of raising funds for projects such as affordable housing and establishing cooperatives in rural areas through the bond market.