Ministry of Finance: Debt Switch Aims to Maintain Government Bond Yield Stability

Jakarta (ANTARA) — The Ministry of Finance has stated that debt switch transactions with Bank Indonesia (BI) in the secondary market are aimed at dampening volatility and maintaining the yield stability of Government Securities (SBN).

Director General of Budget Financing and Risk Management at the Ministry of Finance, Suminto, explained that the secondary market debt exchange is conducted using a market-based approach, ensuring that its implementation preserves market integrity and discipline.

“With the execution of the SBN exchange with BI, this will naturally reduce the volume of SBN offerings in the primary market, particularly through auctions,” Suminto said during the February 2026 edition of the APBN KiTa press conference in Jakarta on Monday.

This mechanism, he said, can serve as a pillar supporting SBN yield stability.

The transactions are carried out in stages on SBN held by BI, with settlement before maturity in accordance with prevailing regulations.

The agreement was reached during the 2026 Fiscal and Monetary Policy Coordination meeting on Friday (20 February).

The Ministry of Finance and BI agreed that the issuance of SBN by the Government and the purchase of SBN from the secondary market by BI would be conducted based on prudent fiscal and monetary policy principles, whilst maintaining market discipline and integrity.

Both institutions committed to ensuring that the issuance and purchase of SBN are carried out transparently, accountably, in accordance with market mechanisms, and with robust governance.

According to both authorities, further implementation will be coordinated on an ongoing basis, as has been the close practice to date, taking into account the dynamics of economic developments and financial markets both domestically and globally.