Foregoes Activation of BSF, Purbaya Uses This Method to Stabilise Indonesia's Bond Market

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has revealed that the bond stabilisation fund (BSF) will not be activated in the near future. According to him, the current condition of the domestic debt securities market remains under control and has not entered a crisis phase.

Purbaya emphasised that the current bond market stabilisation measures will be more focused on managing state cash and existing government fiscal instruments, including utilising the Budget Surplus Balance (SAL).

“BSF, so perhaps we won’t activate the Bond Stabilisation Fund yet, but stabilisation of bond prices first. They’re different. The Bond Stabilisation Fund is for when there’s a crisis, then we call on everything,” said Purbaya during a press conference on Monday (11/5/2026).

He explained that the government is currently choosing to optimise existing instruments before involving other institutions such as PT Sarana Multi Infrastruktur (SMI) or the Indonesia Investment Authority (INA).

“This isn’t a crisis, we’re using all the instruments we have to carry that out. Not at this time, we haven’t reached the point of inviting others, we haven’t invited SMI or INA or others, we haven’t used them,” he said.

Therefore, bond price stability will be maintained through active management of state cash flows by the Directorate General of State Treasury under the Ministry of Finance.

“We’re just managing cash to make the bonds more stable. What we use can be SAL, can be our cash. So my treasury unit will be more active, it will be like a treasury in the private sector,” he said.

Previously, Purbaya had revealed that the government would activate the bond stabilisation fund in the near future.

This is a special fund established to control interest rates and borrowing costs while maintaining interest rates. The fund is rolled over to purchase government debt securities released by investors.

According to Purbaya, the bond stabilisation fund scheme is not like the bond stabilisation framework (BSF) owned by the Financial System Stability Committee (KSSK). He claimed this is not ‘something new’. The scheme already exists but has not been used.