Ministry of Finance, IDX and SMI Speak Out on Debt Risk and Infrastructure Stocks
Jakarta, CNBC Indonesia - The Indonesia Stock Exchange (IDX), the government, and the financing institution PT Sarana Multi Infrastruktur (SMI) have reaffirmed their commitment to reform and safeguarding Indonesia’s economic sustainability. This was stated at the Jogja Financial Festival in Yogyakarta today, Saturday (23 May 2026).
- Government Relies on State Securities to Finance the State Budget
Director General of Financing and Risk Management at the Ministry of Finance, Suminto, explained why the government continues to issue state securities (SBN) to finance the state budget. According to Suminto, the state budget is one of the main engines of national economic growth, so the government needs to keep public spending expansive so that development and welfare continue.
“The state budget is an important instrument for development. Our budget is designed with a deficit; this is how we manage the state budget with an expansive stance. The government needs to spend more so that the economy moves more strongly,” Suminto said at Jogja Financial Festival in Yogyakarta on Saturday (23 May 2026).
Because the state budget is designed to be deficit-funded, the government requires additional financing through debt. However, unlike the 1970s-1990s when the country relied more on foreign loans from World Bank and Asian Development Bank, today the majority of government debt financing comes from the domestic financial markets via SBN issuances. “Now around 85%-87% of the financing of the state budget debt comes from SBN issuances,” Suminto said.
He explained that SBN comes in various types, ranging from conventional to sharia-compliant. In addition, there are wholesale series for large institutions such as banks and insurers, as well as retail series aimed at individual investors. The government is also continuing to encourage the public to invest in retail SBNs such as Indonesian Retail Bonds, Retail Sukuk, and Sukuk Tabungan.
According to Suminto, retail SBNs are suitable for beginner investors because they carry low risk and provide fixed returns. “If you start investing, you should start with instruments that are simple and have low risk,” he said.
He explained that people can start with savings and deposits, then move up to government bonds or fixed income, before entering higher-risk instruments such as stocks.
In addition to expanding government financing, the government also wants to improve financial literacy so that people are not easily trapped by fraudulent investments or high-risk instruments without adequate understanding.
- Stock Exchange Continues to Reform
The Indonesia Stock Exchange (IDX) is optimistic about Indonesia’s capital market prospects in 2026 amid strong public interest, particularly among young people. Acting President Director Jeffrey Hendrik said the number of capital market investors has continued to rise since the Covid-19 pandemic.
“During Covid, the number of investors grew from 4-5 million to 10 million. It is now 27.4 million investors. In five years it has added more than 17 million, effectively doubling,” he said at Jogja Financial Festival 2026, Saturday (23 May 2026).
According to Jeffrey, the surge in the number of investors shows that the public understands capital market investments better and remains optimistic about Indonesia’s economy. From January to 20 May 2026, around 7.4 million new investors joined.
“Meaning that optimism and confidence remain in Indonesia’s capital market,” he said.
Jeffrey explained that stock investments have different characteristics from bonds. Bonds are known as fixed income because they offer guaranteed returns, whereas stocks offer potential capital gains alongside the risk of loss.
“If a company is profitable and pays dividends, shareholders will receive a share. But stock prices can also rise and fall,” he said.
Separately, the IDX also responds to investor criticisms regarding Full Call Auction (FCA), UMA, and stock suspensions that have recently been the subject of debate among market players.
According to Jeffrey, market supervision is an important part of investor protection to ensure orderly, fair, and efficient transactions. “If we detect price manipulation indicators, we will take action,” he said.
He revealed that the IDX is currently reviewing FCA policy and a dedicated monitoring board in collaboration with market participants and regulators. “Last week we had a Focus Group Discussion with market players, including critics. After this we will draft a plan and submit it to OJK,” he said.
In addition, the IDX continues to promote market literacy through partnerships with more than 1,000 universities across Indonesia via investment galleries and stock market schools.
Jeffrey hopes more people, especially the youth, will understand investment properly and avoid fraudulent investment schemes.
- SMI Builds Infrastructure, Managing Risk
PT Sarana Multi Infrastruktur (SMI) disclosed its strategy to keep its non-performing loan (NPL) ratio very low despite the high risks associated with financing long-term infrastructure projects. “This reflects our exposure to financing infrastructure in Indonesia,” he said.
As of the end of 2025, 492 projects nationwide had cumulatively been financed to Rp 274.96 trillion.
The non-bank financial institution under the Ministry of Finance recorded an NPL ratio of around 0.4%, well below the industry average for financing. A representative of PT SMI said the success in maintaining financing quality is achieved through stringent project selection, risk mitigation, and ongoing project monitoring. “Alhamdulillah we have kept the NPL below 1%, precisely around 0.4%. This is a performance we are very proud of,” he said.
As an infrastructure financing institution, PT SMI has a mandate to accelerate national development through financing various strategic projects. The financing provided includes