BI Aggressively Absorbs Liquidity, SRBI Outstanding Tops IDR 1,072 Trillion

Bank Indonesia (BI) is increasingly active in using its Rupiah Securities (SRBI) in monetary operations, with the outstanding value of the instrument now surpassing IDR 1,000 trillion. Data from BI’s official website shows total outstanding SRBI reached IDR 1,072.62 trillion by the end of June 2026, an increase of IDR 92.74 trillion, or 9.5%, compared to IDR 979.88 trillion in May 2026. This is the highest level since the SRBI was first issued in September 2023. On an annual basis, the value soared by IDR 289.65 trillion, or 37%, from the June 2025 position of IDR 782.97 trillion. The SRBI is a rupiah-denominated security issued by BI, using government bonds held by the central bank as the underlying asset. The instrument can be traded on the secondary market and is used by BI as a contractionary monetary operation tool to absorb rupiah liquidity. The increase in outstanding SRBI was accompanied by a surge in non-resident or foreign investor ownership. In June 2026, non-resident holdings of SRBI reached IDR 293.16 trillion, the highest position since the instrument was launched. The previous record was IDR 262.17 trillion in October 2024. Foreign ownership increased by IDR 76.68 trillion, or 35.42%, in just one month, up from IDR 216.48 trillion in May 2026. Compared to June 2025, when it stood at IDR 190.06 trillion, foreign ownership has jumped by IDR 103.10 trillion, or 54.25%. Foreign investors now control approximately 27.33% of the total outstanding SRBI. Non-resident holdings also account for nearly 84% of the total non-bank group holdings, which reached IDR 349.76 trillion. Meanwhile, banks remain the largest holders of SRBI with a value of IDR 615.71 trillion, or around 57.4% of the total outstanding. However, this amount fell by IDR 62.18 trillion, or 9.17%, compared to the previous month. The surge in non-resident ownership shows that SRBI’s appeal to global investors remains strong. High yields offer greater return potential, while BI’s stabilisation policy helps mitigate risks from rupiah movements. Nevertheless, pressure on the rupiah remains a consideration, as it can reduce foreign investors’ profits after conversion back to their home currencies. The high yield on SRBI serves as compensation for this exchange rate risk. In addition, holdings in the ‘other’ category also experienced a sharp increase, soaring from IDR 41.55 trillion in May to IDR 107.15 trillion in June, a rise of IDR 65 trillion or 157%. BI noted that this ‘other’ category represents SRBI currently in repo transactions with Bank Indonesia. A repo, or repurchase agreement, is a transaction where the SRBI holder sells the securities to BI with an agreement to repurchase them at a predetermined time and price. Through this transaction, the SRBI holder obtains cash from BI by temporarily handing over the SRBI. Once the repo period ends, the instrument holder repurchases the SRBI as agreed. The rise in outstanding SRBI through the end of June 2026 coincided with a surge in the yields offered. In one month, the instrument’s yield jumped by more than 60 basis points across all tenors. Based on the auction results of 26 June 2026, the six-month SRBI yield was recorded at 7.360%, up from 6.722% at the last auction in May. The nine-month tenor yield increased from 6.763% to 7.540%, while the 12-month tenor yield rose from 6.919% to 7.700%. Overall, SRBI yields increased by around 63.8 to 78.1 basis points in a month, with the largest increase occurring in the 12-month tenor. However, at the latest auction on 17 July 2026, SRBI yields began to move lower. The six-month tenor yield fell to 7.224%, while the nine-month and 12-month tenors dropped to 7.420% and 7.644%, respectively.