Deputy Finance Minister Reveals Indonesia's Government Bonds Performance Better than India and South Africa
Jakarta, CNBC Indonesia - Deputy Finance Minister Juda Agung revealed that the performance of Indonesia’s bond market remains resilient amid current global dynamics. This is evidenced by the declining yields or returns on government securities (SBN) compared to US Treasuries (UST) and bonds from several other countries.
Juda stated that yields on foreign currency SBN and rupiah SBN with a 10-year tenor are beginning to stabilise. Currently, the yield on US dollar SBN stands at 5.24% for May 2026, and rupiah SBN at 6.78% for May 2026.
“If the yield can still be maintained like this, it means that domestic and global investors still have confidence in our fiscal condition,” Juda said during the Rakorbangpus 2026 in the Context of Preparing the 2027 RKP, on Thursday (7/5/2026).
This yield level is lower compared to the 2008 crisis period and others. Furthermore, Juda assured that the spread between SBN yields and UST remains stable at around 237 basis points (year-to-date).
This is lower compared to other countries: the Philippines (259 bps), South Africa (454 bps), India (263 bps), Mexico (462 bps), and Brazil (956 bps). “We can still maintain the spread, and this shows that confidence in our fiscal position is still quite strong,” he stated.
On this occasion, he acknowledged that fiscal management this year is quite challenging due to the rise in global oil prices, which is driving increased fuel subsidy spending. Amid these shocks, the government emphasises that fuel subsidies will be maintained to preserve people’s purchasing power.
The government has also set a worst-case scenario for oil prices at US$100 per barrel. Meanwhile, the current average oil price in Indonesia is around US$80 per barrel. This means, Juda said, there is still a significant gap, so the government is confident in controlling the state budget to remain stable.
In addition, the government is implementing budget refocusing. With this measure, Juda is confident that the deficit can be kept below 3%.