Indonesia to Boost Short-Term Government Bond Issuance in 2026

Enhancing Cash Management and Market Depth

The Indonesian government is set to increase the issuance of short-term government bonds (SBN) with maturities ranging from one month to 12 months in 2026. This strategic move is designed to improve cash management efficiency for the government and promote the development of the domestic financial market.

According to Suminto, Director General of Financing and Risk Management at the Ministry of Finance, the decision to ramp up short-term SBN issuance serves two primary objectives. First, it aims to optimize government cash management and financing. Second, it seeks to deepen the SBN and money markets.

The increased issuance of short-term SBN is expected to provide the government with greater flexibility in managing its cash flow. By having a more robust short-term bond market, the government can better match its cash inflows and outflows, thereby reducing the risk associated with liquidity management.

Moreover, this move is likely to have a positive impact on the domestic financial market. By offering a wider range of short-term SBN products, the government can attract a broader investor base, including institutional investors and individual investors. This, in turn, can lead to a more liquid and vibrant financial market.

The decision to increase short-term SBN issuance is also in line with the government's efforts to develop a more sophisticated and diverse financial market. By providing a range of investment products with different maturities, the government can cater to the diverse needs of investors, thereby promoting financial market development.