Thursday, June 8, 2023 | 09:15 WIB

Prospect of US debt default won’t have significant impact on Indonesia, finance ministry assures


Jakarta, IO – Finance Ministry (Kemenkeu) said possible US debt default has not roiled global financial markets. Thus, it is likely that it will not have a significant impact on Indonesian bond market.

“The issue with the US debt ceiling has so far not affected the US financial markets or global financial markets, so it has not had a significant impact on the Indonesian government bond (SBN) market,” said Kemenkeu Financing and Risk Management (DJPPR) director general Suminto, reported Katadata, Wednesday (3/5).

Suminto revealed that the performance of the domestic SBN market is currently still very good.  According to him, this is indicated by the decline in yields on government securities, which means prices are rising.

In other words, Indonesian government bonds are still in high demand. This is evident from the inflow of foreign investors’ funds into the SBN market which hit Rp60.5 trillion ytd.

Read: Challenging USD dominance, a number of countries begin to de-dollarize

Suminto is of the view that the financial problems currently plaguing the US government are actually a classic issue where in previous cases an agreement has always been reached, namely by raising the debt ceiling.

Debate over the debt ceiling in the US also took place in 2021. However, the US Congress finally agreed to raise the debt limit after some wrangling. (un)


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