Finance Ministry, Central Bank Agree on Rp 173.4 Trillion Debt Switch for 2026

JAKARTA, Investortrust.id — Finance Minister Purbaya Yudhi Sadewa and Bank Indonesia Governor Perry Warjiyo agreed on Friday, Feb 20, 2026 in Jakarta to conduct a debt switch of Rp 173.4 trillion, equal to about $10.8 billion, in 2026 to manage maturing government bonds and safeguard macroeconomic stability.

The planned transaction matches the amount of government securities, known locally as Surat Berharga Negara or SBN, that will fall due next year, underscoring coordination between fiscal and monetary authorities as global conditions remain volatile.

In a joint statement issued Saturday, the Finance Ministry and Bank Indonesia said the debt switch would be executed gradually for bonds held by the central bank, with settlement before maturity in accordance with prevailing regulations.

“The implementation of the 2026 SBN debt switch is planned in line with the amount of SBN maturing in 2026 totaling Rp 173.4 trillion,” the statement said.

The bilateral exchange mechanism between the ministry and the central bank had been used in previous years, including 2021, 2022 and 2025, as part of efforts to smooth refinancing risks.

Officials stressed that new bond issuance by the government and purchases by the central bank in the secondary market would adhere to prudent fiscal and monetary principles while preserving market discipline.

“Purchases of SBN by Bank Indonesia in the secondary market will be conducted from market participants and through bilateral debt switches using prevailing market prices,” the statement said.

.

The agreement followed a coordination meeting on Friday, with both men describing the move as policy synergy aimed at reinforcing economic growth stability.

Indonesia’s 2026 state budget deficit is set at 2.68% of gross domestic product, to be financed through a mix of debt and non-debt instruments.

Debt financing will include domestic and global bond issuance as well as withdrawals of foreign and domestic loans.

On the monetary side, Bank Indonesia reiterated its commitment to keep inflation within a 2.5% plus or minus 1% target band in 2026, while maintaining rupiah stability.

“The pro-market monetary operations strategy is directed at maintaining adequate liquidity in money and banking markets by managing interest-rate structures, monetary instrument volumes, and SBN transactions in the secondary market,” Perry said at a recent policy meeting.

As part of liquidity expansion, the central bank reported that outstanding Rupiah Bank Indonesia Securities, or SRBI, declined from Rp 916.97 trillion at the start of 2026 to Rp 819.5 trillion as of Tuesday, Feb 18, 2026.

“Bank Indonesia has also purchased SBN as part of close fiscal-monetary coordination, which in 2026 up to Feb 18 reached Rp 39.92 trillion, including Rp 20.23 trillion in the secondary market,” Perry said.

The coordinated approach reflects Jakarta’s effort to balance growth ambitions with market credibility, as policymakers seek to reassure investors that financing needs can be met without destabilizing inflation or the currency.