Bank Indonesia to Increase Remuneration on Government Funds

Bank Indonesia (BI) is set to increase the remuneration paid by the central bank to the government. Remuneration refers to the interest or returns earned on the placement of government funds within Bank Indonesia.

BI Governor Perry Warjiyo stated that this measure aims to ensure that the government’s debt interest burden remains controlled. “As it stands, we provide remuneration on government accounts held at BI. We will recalculate the amount of this remuneration so that the government’s interest burden remains manageable,” Perry told reporters at the House of Representatives building on Saturday, 6 June 2026.

Perry noted that this step also serves as a response to concerns raised by global debt rating agencies regarding government interest rates. According to him, by increasing remuneration, the interest rate burden on Government Securities (SBN) that the government must pay will be reduced.

Finance Minister Purbaya Yudhi Sadewa stated that this incentive from BI will bolster the government’s cash reserves. “Therefore, even if new debt is issued, the increase in interest [from remuneration] will provide coverage,” he told journalists at the DPR building.

Previously, Purbaya revealed that S&P Global Ratings highlighted the ratio of government debt interest to revenue, which has risen above 15 per cent. This warning was communicated by the S&P team to Purbaya during a meeting in Washington DC, USA, on Tuesday, 14 April 2026.

“They issued a warning and discussed in depth that interest payments compared to income are above 15 per cent,” Purbaya said in his statement, quoted on Saturday, 18 April 2026. This year, Indonesia’s debt interest payments are projected to reach nearly Rp 600 trillion, with a target of Rp 599.5 trillion in the State Budget (APBN). These interest payments have increased from Rp 552.1 trillion in 2025 and Rp 488.4 trillion in 2024.