Indonesian Bond Yields Rise, Finance Minister Asserts Debt Burden Remains Secure

Finance Minister Purbante Yudhi Sadewa has emphasised that the increase in yields for 10-year Indonesian Government Securities (SBN) will not affect the government’s debt burden.

Purbaya revealed that the fiscal authority will coordinate with Bank Indonesia regarding the adjustments necessitated by the rising yields.

“It will be settled with the Central Bank; [the increase in SBN yields] will have no impact on us,” said Purbaya in Jakarta on Thursday (3/9/2026).

Pressure in the domestic financial market is evident from the rise in 10-year SBN yields. According to data from Trading Economics, the 10-year SBN yield rose to 7.229%, an increase of 0.83% year-on-year (yoy), during trading on Thursday (4/9/2026).

This rise in bond yields is occurring in various countries, not just Indonesia. The condition is triggered by geopolitical tensions in Iran. One country drawing significant attention is Japan.

The yield on 10-year Japanese government bonds increased to its highest level since September 1996. According to Refinitiv data, on Tuesday (1/9/2026) at 10:35 WIB, the yield breached the 3.001% level, marking its highest position in 30 years.

Over the last two years, the yield on 10-year Japanese government bonds has increased more than threefold. In Europe, the 10-year German government bond yield reached 3.378%, up by 4 basis points, representing its highest level since 2011.

Meanwhile, the 10-year US Treasury yield briefly touched 4.814%, the highest level since November 2023. In the United Kingdom, 10-year government bond yields (gilts) even reached 5.25%, the highest level since the aftermath of the 2008 global financial crisis.

Furthermore, inflation is also driving this upward trend in yields. The ongoing conflict in the Middle East has driven up the prices of oil and various commodities, including fertilisers.