Bank Indonesia Paves Way for Corporate Bonds to Serve as Collateral in Monetary Repo Operations
Bank Indonesia (BI) is expanding the types of securities that can be used as underlying assets in monetary operations by including high-quality corporate bonds and sukuk. This step is intended to strengthen the effectiveness of monetary policy transmission while simultaneously encouraging the deepening of the domestic financial market.
The inauguration of this expansion in monetary operation underlying assets was conducted by the Governor of Bank Indonesia, Destry Damayanti, alongside the Minister of Finance, Suahasil Nazara, in Jakarta on Thursday (1/1:10/2026). Also in attendance were the Executive Head of Capital Market, Derivatives, and Exchange Supervision of the Financial Services Authority (OJK), Hasan Fawzi; the Chairman of the Indonesian Money and Foreign Exchange Market Association (Apuvindo), Ari Rizaldi; as well as representatives from the banking sector and related institutions.
Destry explained that the expansion of securities as collateral for monetary operations is part of a pro-market monetary operation strategy, which is a policy integrated with the development of the Money and Foreign Exchange Market (PUVA).
According to her, the effectiveness of monetary policy relies heavily on the ability of the financial market to transmit policy signals to the real sector through business and household financing.
“The effectiveness of monetary policy depends greatly on transmission through a deep, liquid, and efficient financial market,” said Destry.
She emphasised that through pro-market monetary operations, BI does not only manage liquidity, interest rates, and exchange rates, but also encourages transaction activity in the financial market to ensure financing for the real sector becomes increasingly robust.
Moving forward, this expansion of underlying assets is expected to deepen the corporate bond secondary market, strengthen the price discovery process, and support the financing of strategic sectors such as housing and infrastructure.
On the same occasion, Minister of Finance Suahasil Nazara emphasised that the government will continue to maintain economic stability and increase investor confidence in the Indonesian financial market.
“We at the Ministry of Finance, together with the LPS and Danantara as the sovereign wealth fund, will continue to safeguard the Indonesian economy and build policy credibility for all investors, wherever they may be,” said Suahasil.
The implementation of the expansion of monetary operation underlying assets has been carried out gradually since November 2025. As of 30 September 2026, the total volume of monetary operation repo transactions using corporate bonds and sukuk from PT Sarana Multigriya Finansial (SMF) has reached IDR 1.25 trillion.
BI subsequently expanded the scope of eligible securities by adding bonds and sukuk from PT Sarana Multi Infrastruktur (SMI). The first repo using SMI securities was conducted on 28 September 2026, with a value of IDR 60 billion.
BI data shows that this policy has begun to impact secondary market activity. The average transaction volume of SMF securities increased sharply from IDR 31.9 billion per day in October 2025 to IDR 179.9 billion per day by the end of August 2026.
Furthermore, bank ownership of SMF bonds also increased by 18%, from IDR 8.69 trillion to IDR 10.22 trillion during the same period.
According to BI, these developments demonstrate a positive response from market participants to the expansion of monetary operation instruments and serve as a signal that the deepening of the domestic financial market is moving towards a stronger direction.
In the future, BI will continue to strengthen coordination with the Ministry of Finance, OJK, and various other stakeholders to support the implementation of pro-market monetary operations. Through this policy, BI hopes that the flexibility of banking liquidity management will increase, corporate bond transaction activity in the secondary market will become more active, and ultimately, it will support Indonesia’s sustainable economic growth.