business

Kemenkeu: The Performance Of Indonesian Bonds Remains Robust Amidst Global Volatilit

Deputy Minister of Finance Thomas Djiwandono has stated that the performance of Indonesian government bonds, or State Securities (SBN), remains robust despite the volatility in global markets.

"Although the market volatility is quite significant and the global situation is unfavorable, the performance of Indonesian government bonds remains strong, indicating confidence in our business," Thomas remarked during the press conference for the June 2025 APBN KiTa edition in Jakarta on Tuesday.

Thomas noted that the performance of SBN auctions in the primary market continues to be well-maintained.

For instance, in the auction of State Bonds (SUN) on June 3, 2023, the bid-to-cover ratio reached 2.76. Meanwhile, for the State Sharia Securities (SBSN), the bid-to-cover ratio was even higher at 3.69 during the auction on June 10, 2025.

"In fact, in the latest auction, the total bids received amounted to Rp81.03 trillion, with Rp30 trillion awarded, resulting in a bid-to-cover ratio of approximately 2.7. The average bid-to-cover ratio throughout this year has also remained at a healthy level, specifically 2.57 for SUN and 2.52 for SBSN," Thomas added.

Support from foreign investors remains positive, according to Thomas, indicating that market confidence in Indonesia's fiscal stability and credibility continues to be upheld.

In terms of yield, the yield on 10-year government bonds (SBN) was recorded at 6.72 percent on June 13, 2025, reflecting a decrease of 25 basis points (bps) year-to-date.

The yield spread compared to United States Treasury bonds is also competitive, standing at 231 bps, which is lower than that of peer countries with similar credit ratings.

Foreign investor confidence is also evident in the solid inflow of funds, with net purchases by non-residents reaching Rp53.91 trillion by mid-June.

"This serves as a positive signal that our SBN instruments remain an attractive option amid global uncertainties," Thomas added.

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Tag: Kemenkeu SBN Thomas Djiwandono