Purbaya Will Only Activate BSF During Crises

Finance Minister Purbaya Yudhi Sadewa stated that the government will not yet utilise the Bond Stabilization Fund (BSF). He assured that the BSF would only be activated during a crisis. For the time being, Purbaya said, the government will stabilise government bond prices without the BSF mechanism. “So we might not activate the Bond Stabilization Fund yet, but stabilise bond prices first. They are apparently different. The Bond Stabilization Fund is for crises,” he remarked on Monday, 11 May 2026. Previously, the former Chair of the Indonesia Deposit Insurance Corporation (LPS) Board of Commissioners had stated that the BSF mechanism would soon be implemented to stabilise government debt securities prices. He also planned to involve several institutions or special mission vehicles (SMVs) under the Ministry of Finance to assist in this effort. However, recently he confirmed that those institutions would not be called upon yet. The current approach is cash flow management. “This isn’t a crisis, so we are using all the instruments available to us to carry it out,” Purbaya explained. The plan to activate the BSF was initially revealed by Purbaya during the State Budget (APBN) press conference on 5 May 2026. The day after, the State Treasurer elaborated that the BSF is an initiative of the Ministry of Finance itself and would be carried out soon. The use of BSF is taking place amid a trend of capital outflows in the government securities (SBN) market, which has triggered rupiah exchange rate depreciation. By using the BSF, it is hoped that SBN prices will become more stable and encourage rupiah strengthening. The Finance Minister once stated that this step differs from the bond stabilisation framework or Bond Stabilization Framework, which has so far been launchable through the Financial System Stability Committee (KSSK) protocol. Citing Antara, the Bond Stabilization Framework initiative was previously explained by Sri Mulyani in 2018 when she was still serving as Finance Minister. At that time, Sri Mulyani stated that the BSF could be activated if, based on the KSSK’s assessment, the economic condition is in a state of alert.