Government Increasingly Aggressive in Seeking Debt, What's Going On?

The ratio of funds absorbed by the government from State Securities (SBN) auctions increased in early 2026 compared to throughout 2025. SBN are government financing instruments through the issuance of debt securities. In general, SBN consist of two main types: State Debt Securities (SUN) and State Sharia Securities (SBSN). Through these instruments, the government attracts funds from investors to finance APBN needs. In SBN auctions, investors submit offers or bids. From the total offers received, the government then determines the amount of funds to absorb or take. Based on data from the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, throughout 2025, the total bids received in SUN and SBSN auctions reached approximately Rp2,974.65 trillion. From that amount, the government took approximately Rp917.55 trillion. This means the ratio of funds taken by the government to the total bids throughout 2025 was around 30.85%. However, in 2026, the portion increased quite sharply. Up to 5 May 2026, the total bids received in SUN and SBSN auctions reached approximately Rp865.66 trillion. From that amount, the government took approximately Rp421.10 trillion. Thus, the ratio of funds taken by the government to the total bids rose to around 48.65%. If in 2025 the government took around Rp31 from every Rp100 of offers received, or only a third, then in 2026 the portion rose to nearly Rp49 from every Rp100 of offers, or approaching half of the total offers received. This increase in ratio is also evident in the Government Debt Securities Management report released by DJPPR of the Ministry of Finance. In 2025, the average incoming offers were recorded at Rp63.30 trillion per auction, while the average funds taken by the government were only Rp19.52 trillion per auction. As for 2026, the latest report released on 14 April 2026 shows that the average incoming SBN bids fell to Rp56.61 trillion per auction. This decline is a notable point as it occurred amid global geopolitical turmoil, particularly the conflict in the Middle East, which has made market liquidity tend to be tighter. Global investors are also more cautious and tend to avoid risky assets, including instruments in developing countries or emerging markets. However, while the average investor offers declined, the average funds taken by the government actually rose to Rp27.24 trillion per auction. This can be seen as a signal that the government is more aggressively utilising the SBN market to secure financing from early 2026. However, it should be noted that this comparison is not fully equivalent. The 2026 data only covers the period up to April, while the 2025 data reflects performance for the full year. Therefore, the 2026 figures may still change following the dynamics of SBN auctions in subsequent months.