August 20, 2026 | 04:43 pm
TEMPO.CO, Jakarta – Indonesia's Finance Minister Purbaya Yudhi Sadewa has welcomed the United States government's decision to double its purchases of government bonds, saying the move reinforces Indonesia's own bond buyback policy as an internationally recognized approach to maintaining market liquidity.
Purbaya said the US move showed that Indonesia had adopted a policy that could serve as a model for other countries.
“That shows what we are doing is indeed an international standard. Maybe America is copying us too, and it worked, so they followed,” Purbaya said after attending a working meeting with the Budget Committee of the Indonesian House of Representatives (DPR) in Jakarta on Thursday, August 20, 2026.
Indonesia has implemented a buyback policy for government securities, known as Surat Berharga Negara (SBN), through the Finance Ministry's Directorate General of Budget Financing and Risk Management (DJPPR).
Purbaya said Indonesia's bond buyback program serves the same purpose as the measure adopted by the US government: maintaining liquidity in the financial system.
“The concern is clearly the same. They (the US) are doing this to add liquidity to the economic system,” he said.
Maintaining Market Liquidity
Purbaya said governments need to take measures to maintain economic stability when liquidity conditions in financial markets become strained.
“If the government sees liquidity being disrupted anywhere, it will take every legitimate measure available to ensure that its economy is not disrupted. So what we are doing is the same as what America is doing,” Purbaya said.
The US Treasury Department has doubled the maximum amount of government debt it can buy back in each operation from US$2 billion to at least US$4 billion.
The move is aimed at easing heavy selling pressure, supporting market liquidity and containing rising yields on longer-term US government bonds, particularly those with maturities of 10 to 30 years.
The Push and Pull of Municipal Bonds
7 hari lalu
Regional governments turn to municipal bonds to plug budget gaps. Complex requirements and weak fiscal capacity remain major hurdles.
Economist Highlights Potential and Risks of Merah Putih Bond
14 hari lalu
INDEF economist highlights the potential and risks of Danantara's Merah Putih Bond, including its impact on Indonesia's financial market.
Indonesia's OJK Clarifies Rules for Panda Bonds, Patriot Bonds
19 hari lalu
OJK explained the regulatory status of Indonesia's Panda Bonds and Danantara's Patriot Bonds, including their issuance and registration rules.
Jakarta Bond Plan Not Due to Cash Shortage, Official Says
23 hari lalu
Jakarta official Yustinus Prastowo clarified that the provincial government's Rp3.5 trillion regional bond plan is not a fix for cash shortages.
Jakarta Eyes Rp3.5 Trillion Bond Issuance in June 2027
29 hari lalu
The Jakarta bond is projected to be an alternative funding mechanism to accelerate infrastructure development and elevate public service quality.
Impunity for Danantara Bond Holders
34 hari lalu
Danantara issues bonds for conglomerates with a promise of legal immunity. The proceeds will finance projects that are unattractive to investors.
Bond Article Legislation Scandal
34 hari lalu
Article 50A of the Financial Sector Development and Strengthening Law can potentially legalize money laundering.
Money-Laundering Loophole in the Financial Sector Bill
36 hari lalu
Money-laundering safeguards never surfaced during deliberations over the amendment to the Financial Sector Development and Strengthening Law.
Why Beginner Investors Should Consider ORI030
43 hari lalu
State securities are well-suited to the needs of many retail investors.
Indonesia Launches ORI030 Bonds, Offering Up to 7% Return
44 hari lalu
The Indonesian Finance Ministry opened the offering for the government bond ORI030 series with higher coupon rates than those of the previous series.
