Finance Ministry Responds to Low Investor Interest in State Securities
The Ministry of Finance (Kemenkeu) has recorded a lower bid-to-cover ratio—the ratio of bids received to funds awarded—across five State Securities (SUN) auctions in early 2026 compared to the same period last year. The ministry indicated it may adjust issuance levels accordingly.
Suminto, Director General of Financing and Risk Management at the Finance Ministry, stated that the average bid-to-cover ratio for five SUN auctions in early 2026 stood at 1.95 times. “This figure is slightly lower than the average for the same period in 2025, which reached 2.27 times,” he told Tempo on Sunday, 8 March 2026.
The bid-to-cover ratio serves as a key indicator of investor interest. A higher ratio is favourable as it signals strong demand.
The decline in incoming bids was evident from a State Securities auction on Tuesday, 3 March 2026, which attracted only Rp50.9 trillion in offers. This represented a decrease compared to the previous month’s Rp63 trillion and January’s Rp90.96 trillion.
Suminto identified several factors influencing investor interest in SUN auctions since the start of the year. First, rising global geopolitical uncertainty has affected financial market sentiment, including foreign investor interest in State Securities. Secondly, seasonal factors such as extended holiday periods around Chinese New Year, Ramadan, and Eid al-Fitr have increased domestic liquidity demands.
With investor interest softening, Suminto stated that the government would maintain a prudent, flexible, and opportunistic strategy for managing budget financing. “State Securities issuance, including through auctions, is conducted flexibly and opportunistically, adjusting to developments in budget financing needs, government cash positions, and financial market conditions.”
State Securities issuance targets are set quarterly, giving the government scope to adjust issuance volumes and instrument composition at each auction. The objective is to maintain efficient debt servicing costs and optimal financing. Nevertheless, Suminto stated that the government currently sees no need to change auction frequency.