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Government bonds dominate Indonesian debt, exceeding Rp 7 quadrillion
As of September, the majority of Indonesia’s government debt is dominated by government bonds (SBN) at 88.86 percent.
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A visitor looks for information about sukuk during an exhibition in Jakarta on Feb. 6, 2009. (AFP/Adek Berry)
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ccording to the Finance Ministry, the composition of the Indonesian government's debt is predominantly attributed to government bonds (SBN) at 88.86 percent as of September 2023. Out of Rp 7,891.61 trillion (US$509.39 billion) in total government debt, government bonds make up Rp 7,012.7 trillion.
"From the perspective of instrument composition, the government's debt composition mostly consists of SBN with a proportion of 88.86 percent," Ubaidi Socheh Hamidi, secretary of the ministry’s Financial Risk Management Directorate General, said on Thursday.
Ubaidi said the government always handled debt carefully with controlled risks through an optimal composition when managing the state budget.
He explained that bonds had a strategic purpose in the financial system, primarily due to their conducive nature, or risk-free characteristics.
He further assured that the issuance of government bonds was legally guaranteed.
Additionally, an SBN is a relatively liquid instrument that can be easily traded in the secondary market without significant impact.
"The liquid SBN market will support the improvement of debt management efficiency in the long term," said Ubaidi.
