Economist's View on Bond Stabilisation Fund Strengthening the Rupiah
Finance Minister Purbaya Yudhi Sadewa plans to activate the Bond Stabilisation Fund (BSF). The aim is to maintain the stability of the value and yields of Government Securities (SBN), thereby encouraging the strengthening of the rupiah’s exchange rate.
Wijayanto Samirin, an economist from Paramadina University, stated that the plan should be implemented during critical or crisis conditions. “It could be formed now, but concrete activation should wait for a truly critical situation,” he told Tempo on 8 May 2026.
Similar to Bank Indonesia’s rupiah interventions that require conserving foreign exchange reserves, Wijayanto believes the BSF must also conserve its ammunition or funding. Moreover, he opines that this approach will not be effective in maintaining the exchange rate without fundamental improvements.
There are three fundamental improvements that need to be made, according to him. First, improving the state budget (APBN) to reduce the deficit through rationalisation of priority programme spending and weapons expenditure, as well as transforming the subsidy regime.
Second, improving capital market governance to reduce net capital outflows. Third, enhancing the investment climate to boost foreign direct investment (FDI).
In addition, Wijayanto assesses that this policy plan will not have a significant impact on investor perceptions. “Investors are not too affected, considering this is just a cosmetic step. They are waiting for concrete fundamental improvement measures,” he said.
The plan to activate the BSF was initially revealed by Purbaya during the state budget (APBN) press conference on 5 May 2026. The day after, the State Treasurer explained that the BSF is an initiative of the Ministry of Finance itself.
The use of the BSF is being carried out amid trends of capital outflows in the SBN market that are triggering rupiah depreciation. By using the BSF, it is hoped that SBN prices will become more stable. “I will try to help the rupiah in my own way,” said Purbaya.
The BSF mechanism is implemented by the government buying back (buyback) SBN in the market when selling actions occur. The Finance Minister stated that the funding source is from the government’s Excess Budget Balance (SAL) and assisted by several institutions or special mission vehicles (SMV) under the Ministry of Finance.
Purbaya also explained that this step differs from the Bond Stabilisation Framework, which has so far been able to be launched through the Financial System Stability Committee (KSSK) protocol. Quoting Antara, the Bond Stabilisation Framework initiative was once explained by Sri Mulyani in 2018 when she was still serving as Finance Minister. At that time, Sri stated that the BSF could be activated if, based on the KSSK’s assessment, the economic condition was in a state of alert.