Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa stated that\nthe bond stabilisation fund could involve funding sources from\ninstitutions under the Ministry of Finance, including special mission\nvehicles (SMVs), to safeguard the stability of the domestic debt\nsecurities market.<\/p>\n
\u201cIf it\u2019s a proper fund, the original design involves several\ninstitutions, including the Ministry of Finance and all SMVs under the\nMinistry of Finance, which can help when we stabilise bond prices.\nThat\u2019s the main point. So, it\u2019s not just SAL,\u201d Purbaya said during a\nKSSK press conference in Jakarta on Thursday.<\/p>\n
Purbaya emphasised that the establishment of the bond stabilisation\nfund aims to keep the debt securities market stable and resilient to\ndisruptions from foreign investors.<\/p>\n
This measure is also expected to prevent volatility in the domestic\nfinancial market and support the stability of the rupiah exchange\nrate.<\/p>\n
He assessed that the pressure on the bond market in recent months was\ntriggered by outflows of foreign capital from the domestic debt\nsecurities market, which rapidly drove up yields.<\/p>\n
According to him, the volume of those outflows was not particularly\nlarge but has contributed to disrupting the rupiah exchange rate\nstability.<\/p>\n
\u201cIf it\u2019s only Rp1-2 trillion, we should be able to control it easily.\nSo, I will try to contribute and help the central bank in controlling\nit. If we can. If not, then so be it,\u201d he said.<\/p>\n
Purbaya added that the implementation of the bond stabilisation fund\nwill still be discussed further with relevant authorities, including\nregarding its execution mechanism, and is expected to start operating in\nthe near future.<\/p>\n
Previously, on Wednesday (6\/5\/2026), the Finance Minister revealed\nplans to activate the bond stabilisation fund as one of the efforts to\nstabilise the rupiah exchange rate.<\/p>\n
\u201cIn the government, I have my own bond stabilisation fund involving\nseveral parties. We can also meet needs with our own funds for the time\nbeing,\u201d Purbaya said.<\/p>\n
This fund is prepared to stabilise the bond market or debt securities\nby buying back (buyback) Government Securities (SBN) in the secondary\nmarket released by investors.<\/p>\n
That strategy is intended to keep the yield on SBN stable, so that\nforeign investors holding debt securities do not suffer capital\nlosses.<\/p>\n
However, the fund prepared by Purbaya has a different framework from\nthe bond stabilisation framework (BSF) owned by the Financial System\nStability Committee (KSSK).<\/p>\n
According to him, this bond stabilisation fund has been held by the\nMinistry of Finance but has been inactive because it has never been\nused.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/purbaya-states-bond-stabilisation-fund-could-involve-finance-ministrys-smv-1778181226", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }