BTN to proceed with bond issuance despite potential government fund placement
Jakarta — PT Bank Tabungan Negara (Persero) Tbk (BTN) has confirmed that it will proceed with bond issuance in the second semester of 2026, despite the possibility of receiving additional liquidity from government fund placements at state-owned banks.
Chief Executive Nixon LP Napitupulu stated that the bond issuance plans remain on track in accordance with the company’s funding strategy. The instrument is considered to serve a different function compared to government fund placements.
“Bonds will proceed. It’s not just a matter of rupiahs; long-term and short-term instruments cannot simply substitute for each other,” said Nixon during a meeting at the bank’s headquarters in Jakarta on Friday, 13 March 2026.
“The purposes differ, as do asset-liability management approaches, pricing mechanisms, and interest rate risks,” he continued.
“It will proceed, though perhaps in the second semester since liquidity is currently sufficient,” Nixon added.
BTN plans to raise Rp6 trillion this year through two corporate actions. The company will issue Rp2 trillion in tier II capital and Rp4 trillion in bonds.
Finance Minister Purbaya Yudhi Sadewa previously announced plans to increase government fund placements by Rp100 trillion to state-owned banks. This policy continues the government’s Rp200 trillion fund placement conducted in September 2025.
From the previous fund placement, BTN received Rp25 trillion in liquidity, which was subsequently channelled into lending. The bank hopes the government will provide an additional Rp12.5 trillion in fund placements.
“We are pleased and hope to receive it as well. We have proposed half of the previous amount,” said Nixon.
However, Nixon emphasised that the final decision rests with the government. Should BTN receive additional fund placements, the bank will direct them towards housing sector financing.
“The majority will still go to housing, housing-related sectors, and various programmes currently underway that are performing well,” he concluded.