Purbaya's Rupiah Rescue Scheme Could Be Effective, Provided...
Jakarta, CNBC Indonesia - Several economists have warned the government to be careful in using the bond stabilisation fund or Bond Stabilization Fund (BSF) mechanism to help Bank Indonesia maintain the rupiah’s exchange rate.
Head of Macro Economic and Market Research at Permata Bank, Faisal Rachman, explained that the implementation of the BSF needs to be carried out cautiously because it can directly affect the government’s fiscal capacity, which is currently focused on driving growth.
Nevertheless, he acknowledged that the system can indeed help exchange rate stability by keeping the yield on government bonds stable through buybacks of debt securities released by foreign investors, thereby maintaining the dollar supply from investors.
“The BSF allows the government to conduct buybacks, stabilising bond prices. However, if not managed carefully, it could raise issues,” Faisal told CNBC Indonesia, quoted on Wednesday (13/5/2026).
However, he emphasised that caution in using the BSF scheme is very important because at the initial stage, the funding source comes from the Budget Surplus Balance (SAL).
“The funding through SAL creates a dilemma. On one hand, it’s for rupiah stabilisation and as a buffer against global pressures, but on the other, the government still wants to maintain its pro-growth policies,” Faisal told CNBC Indonesia, quoted on Wednesday (13/5/2026).
Chief Economist at Maybank Indonesia, Myrdal Gunarto, added that the BSF system would be quite effective if the government has intervention room of around Rp2-3 trillion.
“If for the bond market, it should be sufficient if they have a budget for intervention of Rp2-3 trillion,” Myrdal said.
However, Myrdal also warned that the government’s capacity remains limited if pressures persist over the long term. Therefore, the government needs to maintain investor confidence by ensuring solid economic fundamentals.
“Unless what we’re seeing now is that investors are actually interested if our deal rises as long as our economic performance is solid. It shouldn’t show anything that makes investors nervous,” he said.
As known, at the close of trading today, Wednesday (13/5/2026), the rupiah exchange rate has strengthened again to Rp17,460/US, afterpreviouslybeingunderpressuretoahistoriclowaroundRp17, 500/US this morning.
Finance Minister Purbaya Yudhi Sadewa has also affirmed that efforts to secure the exchange rate through the BSF scheme will not be carried out in the near future, as it requires a process. Additionally, it will be done in the bond market, not the spot market.
“We will help a little at a time later,” Purbaya said after the ceremony for the handover of administrative fines and state financial rescue as well as the repossession of forest areas held at the Attorney General’s Office complex in South Jakarta.