Purbaya Plans to Activate BSF to Stabilise the Rupiah, Here's the Funding Source!

Jakarta, CNBC Indonesia - Deputy Finance Minister Juda Agung has spoken out regarding the activation of the bond stabilization fund (BSF), which will help strengthen the rupiah’s exchange rate.

The BSF is a special fund prepared by the government to purchase Government Securities (SBN) released by investors in the secondary market.

This BSF scheme is issued when there is high pressure in Indonesia’s bond market. According to Juda, this scheme is actually part of the Bond Stabilization Framework (BSF) of the Financial System Stability Committee (KSSK).

However, the Ministry of Finance’s version of the BSF is not issued during a crisis. This scheme can be issued at any time, not necessarily at crisis levels.

“No, this isn’t a crisis, there are levels, right? Normal level, alert, standby, crisis. Well, we can activate it even at the alert level,” he said, when met at Bappenas on Thursday (7/5/2026).

For the funding, Juda explained that the source comes from the government’s fiscal reserves, such as the Budget Surplus Balance (SAL).

“No, the government has it there, there’s SAL, there are funds that are indeed for fiscal reserves and so on that can be used in pressured conditions,” he explained.

When asked whether the activation would be carried out in the near future, Juda said the current conditions are still normal because the market mechanism is still running well, so it has not been activated. The implementation does not require coordination with the KSSK.

“No, that’s the authority of the Ministry of Finance,” said Juda Agung.