Purbaya states bond stabilisation fund could involve Finance Ministry's SMV
Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa stated that the bond stabilisation fund could involve funding sources from institutions under the Ministry of Finance, including special mission vehicles (SMVs), to safeguard the stability of the domestic debt securities market.
“If it’s a proper fund, the original design involves several institutions, including the Ministry of Finance and all SMVs under the Ministry of Finance, which can help when we stabilise bond prices. That’s the main point. So, it’s not just SAL,” Purbaya said during a KSSK press conference in Jakarta on Thursday.
Purbaya emphasised that the establishment of the bond stabilisation fund aims to keep the debt securities market stable and resilient to disruptions from foreign investors.
This measure is also expected to prevent volatility in the domestic financial market and support the stability of the rupiah exchange rate.
He assessed that the pressure on the bond market in recent months was triggered by outflows of foreign capital from the domestic debt securities market, which rapidly drove up yields.
According to him, the volume of those outflows was not particularly large but has contributed to disrupting the rupiah exchange rate stability.
“If it’s only Rp1-2 trillion, we should be able to control it easily. So, I will try to contribute and help the central bank in controlling it. If we can. If not, then so be it,” he said.
Purbaya added that the implementation of the bond stabilisation fund will still be discussed further with relevant authorities, including regarding its execution mechanism, and is expected to start operating in the near future.
Previously, on Wednesday (6/5/2026), the Finance Minister revealed plans to activate the bond stabilisation fund as one of the efforts to stabilise the rupiah exchange rate.
“In the government, I have my own bond stabilisation fund involving several parties. We can also meet needs with our own funds for the time being,” Purbaya said.
This fund is prepared to stabilise the bond market or debt securities by buying back (buyback) Government Securities (SBN) in the secondary market released by investors.
That strategy is intended to keep the yield on SBN stable, so that foreign investors holding debt securities do not suffer capital losses.
However, the fund prepared by Purbaya has a different framework from the bond stabilisation framework (BSF) owned by the Financial System Stability Committee (KSSK).
According to him, this bond stabilisation fund has been held by the Ministry of Finance but has been inactive because it has never been used.