Government Raises Rp185.3 Trillion in New Debt This Year

Jakarta — The government through the Finance Ministry has raised new debt of Rp185.3 trillion as of February 2026, equivalent to 22.3 per cent of the 2026 state budget debt issuance target set at Rp832.2 trillion.

This figure is lower than the realisation in February 2025, which reached Rp249.9 trillion.

Deputy Finance Minister Juda Agung stated that the debt issuance had been reduced by non-debt financing of Rp21.1 trillion.

“Budget financing for 2026 has been maintained well within controlled limits. Realisation at the end of February has reached Rp185.3 trillion or 22.3 per cent of target,” Juda said at a state budget press conference in Jakarta on Wednesday, 11 March 2026.

Most of the debt financing was obtained from the issuance of State Securities (SBN) in the domestic market.

According to Juda, investor interest in SBN remains very strong.

This is evident from the bid-to-cover ratio in SBN auctions, which remains high. For State Debt Securities (SUN), the ratio stands above 2 times, whilst for State Islamic Securities (SBSN) it reaches 3.1 times.

Beyond the domestic market, the government has also raised financing through global SBN issuance in February 2026.

The government issued bonds in two currencies: offshore Chinese yuan (CNH) worth 9.25 billion with a yield of around 2-3 per cent, and euro bonds totalling 2.7 billion euro with a yield of around 4-5 per cent.

“And in the global market, these reasonably good yields demonstrate that global investors are very confident in our economic fundamentals, which remain well-maintained,” he explained.

The former deputy governor of Bank Indonesia ensured that 2026 state budget financing is managed prudently and measurably, considering government liquidity and financial market dynamics.

Debt financing needs are assessed to remain on track through anticipatory measures and active cash and debt management to maintain adequate government cash reserves.