Sri Mulyani Disbursed The Portion Of Foreign Ownership In SBN Down In 10 Years

Minister of Finance Sri Mulyani. (Photo: Doc. ANTARA)

Minister of Finance Sri Mulyani Indrawati conveyed that the portion of foreign ownership in state securities (SBN) has continued to decline over the past 10 years.

This year, non-reciident or foreign investors only hold 14 percent of all SBN traded or down from 2014 whose portion reaches 40 percent.

"The bigger SBN investors are domestic investors. 14 percent of SBN investors are global investors. This is far down from 10 years ago where 40 percent of SBN investors are global investors," he said at the 19th DPR Plenary Meeting. Session Period V 2023-2024, Tuesday, June 4.

However, Sri Mulyani said that the SBN market was still influenced by global sentiment and policies from developed countries.

This is because the relativity of interest rates between SBN Indonesia and SBN developed countries is a factor that determines the attractiveness of investors.

Therefore, Sri Mulyani conveyed that monetary fiscal coordination will also continue to be strengthened to maintain exchange rate stability and yield in the midst of higher for longer risks which are expected to continue.

Meanwhile, strong coordination between the government and Bank Indonesia is also carried out to ensure that the issuance of SBN instruments and monetary policies of Bank Indonesia does not cause crowding out effects.

"Maintaining a balance between attractive pricing for investors and costs of funds that must be borne by the state budget and the economy at large is also a priority in coordination," he said.

According to Sri Mulyani, SBN market investors are global investors who are sensitive to prices and can trigger instability or outflow if not properly managed.

"On the other hand, efforts to maintain exchange rate stability and SBN yield, including a wider financial market, continue to be carried out through deepening financial markets, as mandated by the Financial Sector Development and Strengthening Law," he explained.

For information, based on data from the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance as of May 30, 2024, the portion of foreign ownership was 14.06 percent. Meanwhile, the largest portion of SBN ownership is still held by Bank Indonesia (gross) of 24.45 percent.