Purbaya to Launch Bond Stabilisation Fund
Finance Minister Purbaya Yudhi Sadewa is set to launch the Bond Stabilisation Fund (BSF), which involves using reserve funds to stabilise the bond market. These funds will be employed to maintain debt costs amid high yields on government securities (SBN) and the risk of capital outflows that weaken the rupiah exchange rate.
According to him, the government can utilise these special reserve funds, but they have never been used before. “It has never been implemented. That means it already exists, but it’s dormant. I just want to activate it,” he stated in Jakarta on Wednesday, 6 May 2026.
Purbaya explained that the BSF is an initiative of the Ministry of Finance. It differs from the Bond Stabilisation Framework, which has previously been launched through protocols of the Financial System Stability Committee (KSSK).
The state treasurer stated that the launch of the Bond Stabilisation Fund will be carried out soon. “It will start tomorrow,” he said.
The former Chairman of the Indonesia Deposit Insurance Corporation (LPS) explained the reason as the rise in SBN yields. Amid this yield increase, the value of government debt falls. This decline indicates that foreign investors are beginning to sell bonds or government debt, thereby triggering capital outflows and exchange rate depreciation.
If the value of government debt is maintained, it is hoped that capital flows will not exit the securities market. “I will try to help the rupiah in my own way,” he said.
Purbaya stated that this step does not require approval from Bank Indonesia. Similarly, when he transferred Rp200 trillion from BI to several banks. Because the source of funds for the BSF comes from the government. However, he will still coordinate with the central bank regarding rupiah stability.
Quoting Antara, the Bond Stabilisation Framework initiative was once explained by Sri Mulyani in 2018 when she was still serving as Finance Minister. At that time, Sri stated that the BSF could be activated if, based on the KSSK’s assessment, the economic conditions were in a state of caution.
The Bond Stabilisation Framework is one of the mitigation measures prepared by the government in the form of a short- and medium-term framework to anticipate the impact of crises in the domestic SBN market.