Indonesia to Boost Asset Yields to Support Rupiah

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June 6, 2026 — Indonesia’s central bank and finance ministry have agreed to increase the attractiveness of returns on domestic financial assets in a coordinated effort to support the rupiah, which has recently fallen to record lows.

The decision comes as policymakers seek to restore investor confidence and encourage renewed portfolio inflows into the country’s financial markets.

Strategy to Attract Foreign Inflows

Authorities plan to improve yields on domestic instruments to make Indonesian assets more competitive for global investors.

The move reflects growing concerns over sustained capital outflows, which have weighed on financial markets and contributed to pressure on the currency.

Bond Market and Yield Adjustments

According to the agreement, Bank Indonesia and the finance ministry will work together to ensure more attractive returns across government-related instruments and monetary tools.

Recent market data showed yields on short-term central bank instruments (SRBI) at around 7.25%, compared with 6.902% on the 10-year government bond, highlighting efforts to manage investor demand and capital flows.

Currency Under Pressure

The rupiah has recently come under significant pressure, reaching historic lows amid broader concerns about fiscal policy direction, capital outflows, and global market uncertainty.

Authorities have already intervened in both currency and bond markets to stabilize financial conditions while maintaining market confidence.

Policy Aim: Restore Stability

Officials emphasized that stronger coordination between monetary and fiscal authorities is intended to improve market sentiment and stabilize financial conditions.

The broader goal is to strengthen capital inflows and reduce volatility in the foreign exchange market while supporting Indonesia’s financial resilience.