Revealed! Reasons for the Issuance of Retail SBN Continue to Skyrocket to IDR 130 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA – The government through the Ministry of Finance stated that the target for the issuance of retail Government Securities (SBN) for the 2023 period is IDR 130 trillion.

The Ministry of Finance's Director General of Financing and Risk Management, Suminto, said that his party continues to work on expanding the investor base, conducting market deepening, and maintaining the domestic SBN market itself.

"This year we project that the issuance of retail SBN can reach around IDR 130 trillion", he said in a virtual press conference, Wednesday, February 22.

Suminto explained, this figure was the highest in recent years. He detailed that in the 2019 period, the number of retail SBM issued was IDR 49.9 trillion.

Then, the value of retail SBN grew to IDR 76.8 trillion in 2020, rose again to IDR 97.2 trillion in 2021, and finally IDR 107.4 trillion last year.

"Retail SBN instruments are very good for encouraging the transformation of a saving society in society into an investing society", he emphasized.

Previously, Suminto had emphasized that the issuance of SBN would not disrupt liquidity conditions in the market, especially in the banking sector. According to him, these concerns are groundless because the current funds are sufficient and even tend to be lax.

"Our assessment with BI and OJK that so far has not caused a crowding out of banks, including competition for third party funds (DPK)", he said during a meeting with the DPR's Commission XI some time ago.

Suminto explained the strategy for issuing retail SBN must pay attention to liquidity conditions in the market to avoid the negative effects that would arise.

"For example, in 2022 we will issue retail SBN with a nominal value of IDR 107 trillion, so we will absorb this from the market. But in the same year, SBN was maturing to IDR 84 trillion which we issued from the state budget. So that on a net basis, we only absorbed IDR 23 trillion from investors", he said.