Bank Indonesia likely to lower 2020 GDP outlook as coronavirus spreads

Warjiyo did not comment on Wednesday on policies BI may implement at its March meeting, but has previously said BI had "many instruments" it can use to prop up growth.

BI remains committed to stabilising markets, after Indonesia's bond, equity and foreign exchange markets saw net capital outflows equivalent to 40.16 trillion rupiah ($2.8 billion) in the year to date, mostly government bonds, Warjiyo said.

BI had bought 130 trillion rupiah of government bonds to stabilise yields, he said, adding that the central bank was closely cooperating with other local agencies.

"We know what to do," he said, adding BI was always assessing what a "doomsday scenario" could look like and its probability "which at the moment is still relatively high".

Read Also: Japan's economy shrinks faster than estimated as virus compounds recession risk

Meanwhile, Finance Minister Sri Mulyani Indrawati has pledged more fiscal support after launching a 10.3 trillion rupiah ($718.27 million) stimulus package last month. However, economists question how much additional spending can be provided, given weak revenue collection so far this year.

Authorities were prepared to use all measures implemented during the 2018 global financial crisis to stabilise markets, including buying back government bonds, Indrawati has said.

The Indonesia Stock Exchange revised on Wednesday its guidance on trading halts, beefing up measures already implemented to control outflows after the index posted its biggest single day loss in more than eight years on Monday.