Bank Indonesia (BI) has agreed to carry out a debt swap transaction with the Government in 2026 of IDR 173.4 trillion, in accordance with the amount of SBN that matures in that year.
The transaction is carried out in stages for SBN owned by BI with settlement before maturity in accordance with applicable regulations.
"The mechanism for bilateral exchange of SBN between the Ministry of Finance and Bank Indonesia has been carried out previously, including in 2021, 2022 and 2025," said Head of the Communication and Information Service Bureau of the Ministry of Finance Deni Surjantoro and Executive Director of the Communication Department of BI Ramdan Denny Prakoso in a joint statement received in Jakarta, Saturday.
The agreement was decided in the Fiscal and Monetary Policy Coordination Meeting for 2026 on Friday (20/2).
The Ministry of Finance and BI agreed that the issuance of SBN by the Government and the purchase of SBN from the secondary market by BI will be carried out based on the principles of prudent fiscal and monetary policy and maintain market discipline and integrity. , Monetary
In this regard, the purchase of SBN by BI from the secondary market will be carried out from market participants and through the mechanism of bilateral debt switch with the Government, which can be traded in the market (tradeable) using the prevailing market price according to the market mechanism.
The Ministry of Finance and BI are committed that the issuance and purchase of SBN is carried out transparently, accountable, according to market mechanisms and with strong governance.
According to the two authorities, further implementation will be coordinated from time to time by the Bank as it has been closely running, taking into account the dynamics of economic and financial market developments both domestically and globally.
"Close synergy between fiscal and monetary policies is very important to maintain fiscal stability, monetary stability, especially the stability of the rupiah exchange rate and price stability, and the stability of the financial system in order to support sustainable economic growth," the two authorities said in a joint statement.
For information, the coordination meeting is the implementation of the mandate of Law No. 17 of 2003 concerning State Finances Article 21, that the Central Government and the central bank coordinate in determining and implementing fiscal and monetary policies.
Coordination is also a form of implementation of the mandate of Law No. 23 of 1999 concerning Bank Indonesia as has been amended several times, most recently by Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector Article 55 paragraph (1), as well as Law No. 24 of 2002 concerning State Debt Letters Article 6, and Law No. 19 of 2008 concerning State Sharia Securities Article 7.
The regulation requires the Government to first coordinate and consult with BI in terms of the Government issuing a State Debt Letter (SUN) and a State Sharia Securities Letter (SBSN).
Consultation is needed so that the issuance of SBN by the Government is in line with the direction of policy and BI's monetary operations plan in maintaining stability and supporting economic growth.
The coordination meeting on Friday (20/2) was attended by the Minister of Finance of the Republic of Indonesia and the Governor of Bank Indonesia and their ranks.
The government conveyed its commitment to manage fiscal policy prudently and sustainably, which supports sustainable economic growth, through the management of a controlled 2026 State Budget deficit and a careful financing strategy.
The 2026 State Budget deficit as stipulated in Law No. 17 of 2025 is directed at around 2.68 percent of GDP, with the deficit financing to be met through debt financing and non-debt financing.
Debt financing will be carried out through the issuance of SBN in the domestic market and the global market, as well as the withdrawal of foreign and domestic loans.
The issuance of SBN is supported by debt portfolio management that applies the principle of prudence and strong debt risk management so that it can maintain the Government's debt structure to remain healthy, safe and sustainable.
On the other hand, BI directs the monetary policy in 2026 consistently to maintain inflation within the target of 2.5 plus minus 1 percent and a stable rupiah exchange rate, in order to support sustainable economic growth.
Monetary policy in its implementation, among others, is carried out through a pro-market monetary operations strategy aimed at maintaining adequate liquidity in the money and banking markets by managing the interest rate structure and volume of monetary instruments, as well as SBN purchase and sale transactions in the secondary market.
According to BI, the purchase and sale of SBN from the secondary market is carried out in a measured manner in a monetary control program that is in accordance with the principles of prudent monetary policy so that it remains consistent with efforts to achieve the inflation target of 2.5 plus minus 1 percent and encourage higher economic growth.
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