Indonesia’s central bank will contribute to the government's affordable housing initiative by acquiring government bonds in the secondary market, Governor Perry Warjiyo announced on Thursday night.

However, he did not clarify how such purchases would directly fund the housing program. Representatives from Bank Indonesia (BI) and the finance ministry did not respond to requests for comment.

"Bank Indonesia’s support and funding will come through purchases of government bonds in the secondary market," Warjiyo stated during a joint press briefing with government officials and a lawmaker.

Earlier, Warjiyo had outlined BI’s plan to acquire 150 trillion rupiah ($9.19 billion) worth of state bonds from the secondary market in 2024, with 100 trillion rupiah earmarked for refinancing pandemic-era debt.

"I have discussed with the finance minister that these funds could be utilized not just for debt refinancing of maturing COVID-era bonds, but also to support programs like affordable housing," he added.

President Prabowo Subianto’s administration has committed to delivering three million affordable housing units annually, a key pledge from his 2024 election campaign.

Finance Minister Sri Mulyani Indrawati confirmed that the government is considering issuing bonds specifically to finance the housing initiative, though details regarding timing and the amount remain undecided.

Indonesian law prohibits the central bank from purchasing government bonds directly in the primary market, except for treasury bills with a maturity of less than one year.

Officials did not take questions during the press conference.

Mukhamad Misbakhun, head of parliament’s finance commission, later told reporters that further details on the central bank’s role in supporting the housing program will be disclosed next week following a parliamentary hearing.