Finance Minister Suahasil Nazara said government bond, or SBN, issuance would follow the targets set in the 2026 State Budget, known as the APBN, despite a projected deficit of around 2.85 percent of gross domestic product. He made the comments to reporters at the Fairmont hotel in Jakarta on Monday (26/10).
“Our deficit target has been announced at 2.85 percent of GDP,” Nazara said. “The issuance figure is already there. We work with that.”
Issuance pace watched closely
Realised SBN issuance stood at 497.5 trillion rupiah as of 30 September 2026, equivalent to 62.6 percent of the 2026 APBN target of 799.5 trillion rupiah. Nazara said the ministry monitors financial market conditions before deciding on issuance timing.
“When the market is good, we issue,” he said. “When the market is less good, we make some adjustments to look at the market.”
Yields near Budget assumption
The 2026 APBN assumes a 10-year SBN yield of 6.9 percent. The average yield on the benchmark bond ran at 6.8 percent up to mid-September 2026, close to the government’s planning figure.
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Nazara’s remarks on the yield outlook echoed comments he made earlier at the October edition of the APBN KiTA press conference, held on Friday (9/10).
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