Sri Mulyani Will Issue IDR 334 Trillion SBN In Semester II 2025

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

The Ministry of Finance plans to issue Government Securities (SBN) worth IDR 334 trillion in the second half of 2025.

Referring to the Government Report on the Implementation of the first semester of 2025 State Budget, the total target of issuing SBN (neto) is IDR 642.56 trillion.

By the end of the first semester, the government had issued SBN worth IDR 308.55 trillion or about 48 percent of the annual target.

Thus, the remaining target issuance in the second semester is projected to reach IDR 334 trillion.

"The realization of SBN (neto) in the first semester of 2025 is Rp308,553.0 billion, so in the second semester of 2025 SBN (neto) is projected to be Rp334,009.0 billion," the report said.

In an effort to meet the SBN (neto) target in the second semester of 2025, it is planned to be carried out through a strategy, namely prioritizing the issuance of SBN in rupiah currency, which is carried out to control the risk of exchange rates; prioritizing issuance through regular auctions to increase transparency and efforts to develop the SBN market; optimizing the issuance of retail SBN according to investor demand while still considering costs and risks; conducting private placement selectively in an effort to encourage the provision of instruments for financial market development.

The government will optimize private placement, especially from potential investors who come from institutions that have limitations to purchase SBN through auctions.

Furthermore, they carry out the issuance of foreign currency as a complement that is carried out in a measured manner to control costs and risks, and avoid crowding out effects, as well as expanding/diversing the issuance of foreign currency SBN in addition to strong currency, namely USD, EUR, JPY, also at AUD and/or CNH; as well as implementing the Debt Switch agreement between the Government and Bank Indonesia for SBN in the context of financing COVID-19 which is due in 2025.

For this year, the government has a debt payment obligation to Bank Indonesia of IDR 100 trillion, as part of a burden sharing scheme during the COVID-19 pandemic.

Overall, Finance Minister Sri Mulyani planned the issuance of SBN and larger loan withdrawals in the second semester of 2025 compared to the first semester.

Even so, the progress of debt financing by the end of the year is estimated at IDR 772.9 trillion, slightly lower than the target of IDR 775.9 trillion.

In addition, the government will also utilize an Over Budget Balance (SAL) of IDR 85.6 trillion to reduce the issuance of SBN, fund priority spending, and close this year's budget deficit.

Meanwhile, in the second semester of 2025, loans (neto) are estimated at IDR 123.52 trillion. However, on aggregate until the end of 2025, loans (neto) are estimated at IDR 130.38 trillion consisting of domestic loans (neto) and foreign loans (neto).

The withdrawal of domestic loans (gross) in the second semester of 2025 is projected at IDR 15.79 trillion with a principal installment of IDR 3.94 trillion.

By the end of 2025, domestic loan withdrawals (gross) are projected to be IDR 16.73 trillion with principal installments of IDR 7.21 trillion so that domestic loans (neto) are estimated at IDR 9.52 trillion.

Meanwhile, the withdrawal of foreign loans (gross) in the second semester of 2025 is projected to be IDR 158.02 trillion and principal installment payments of IDR 46.34 trillion.

Until the end of 2025, the withdrawal of foreign loans (gross) is projected to be IDR 215.92 trillion and principal installments of IDR 95.06 trillion, so that foreign loans (neto) are estimated at IDR 120.86 trillion.