Jakarta, IDN Times – Bank Indonesia (BI) continues to intensify efforts to stabilize the rupiah amid mounting market pressures. This commitment is reflected in the outstanding Bank Indonesia Rupiah Securities (SRBI), which have surged to nearly Rp1,000 trillion. By April 2026, the outstanding SRBI reached Rp957.91 trillion, marking a significant year-to-date increase of Rp227 trillion compared to the Rp730.90 trillion recorded in December 2025.
The banking sector remains the primary holder of SRBI, accounting for 70.35 percent or Rp673.90 trillion as of April 2026. Non-bank investors hold the remaining 23.78 percent. Broken down by investor category, foreign ownership stands at Rp192.17 trillion, while domestic investors hold Rp35.66 trillion, with the remaining Rp56.19 trillion held by other categories.
With such a massive issuance of SRBI, what are the implications for the economy?
1. SRBI as a Pillar of BI’s Stabilization Strategy
Yusuf Rendy Manilet, an economist at the Center of Reform on Economics (CORE) Indonesia, notes that SRBI has evolved from a supplementary tool into a vital component of BI’s stabilization strategy.
“BI currently relies heavily on market instruments to protect the rupiah, and SRBI has become one of its primary tools. Reaching the Rp1,000 trillion mark proves that this is no longer just a minor instrument,” Yusuf told IDN Times on Saturday (May 16, 2026).
2. Attracting Investors with Competitive Yields
According to Yusuf, utilizing SRBI provides BI with an alternative to direct foreign exchange market interventions, which can quickly deplete foreign exchange reserves. SRBI is designed to attract capital into rupiah-based assets by offering competitive yields with minimal risk. As investors flock to these securities, the resulting demand for the rupiah helps mitigate currency depreciation.
“When investors put their funds into SRBI, it naturally creates demand for the rupiah, which helps cushion the pressure on the exchange rate,” he explained.
3. Combining Stability Tools: FX, DNDF, and SRBI
Beyond currency stabilization, SRBI plays a key role in absorbing excess liquidity within the banking system. BI now balances a combination of FX market interventions, Domestic Non-Deliverable Forward (DNDF), and SRBI as a primary monetary stabilization package. While Yusuf views this strategy as effective in the short term, he highlights that despite ongoing pressure on the rupiah, its volatility remains relatively well-controlled compared to other emerging markets.
However, he warns of potential downsides to the rising volume of SRBI. One primary concern is that banks may prefer placing funds in BI instruments rather than extending credit to the real sector. “If banks can secure yields of around 6.5 to 7 percent with nearly zero risk through SRBI, the incentive to aggressively lend to productive sectors is inevitably reduced,” Yusuf added.
4. Impact on Credit Growth and Future Challenges
Yusuf noted that this environment contributes to stagnant credit growth. Furthermore, high SRBI yields make it difficult for domestic interest rates to decline. “High SRBI yields keep deposit rates elevated, which in turn keeps lending rates expensive. As a result, businesses continue to face high costs of funding,” he said.
Yusuf also highlighted the interest burden borne by BI as SRBI outstanding balances grow. While this does not directly impact the state budget (APBN), the interest payments can pressure the central bank’s profit margins. He emphasized that while SRBI is effective as a short-term buffer, it is not a permanent solution for currency stability.
“SRBI is essentially a way to buy time. As long as fundamental issues like policy uncertainty, balance of payments pressure, and weak long-term capital inflows remain unaddressed, BI will continue to be forced to serve as the main stabilizer of the rupiah,” Yusuf stated. He concluded that the burden of stabilizing the rupiah cannot rest solely on BI; the government must also contribute through credible fiscal policies, a consistent investment climate, and the strengthening of long-term foreign exchange sources.
Summary
Bank Indonesia (BI) has significantly increased its issuance of Rupiah Securities (SRBI) to stabilize the currency, with outstanding balances reaching Rp957.91 trillion by April 2026. This instrument has become a primary tool for the central bank to attract capital and manage liquidity by offering competitive, low-risk yields to investors. By incentivizing investment in rupiah-based assets, BI aims to reduce pressure on the exchange rate and maintain market stability without heavily relying on foreign exchange reserves.
However, analysts warn that the massive reliance on SRBI may hinder economic growth by discouraging banks from lending to the real sector in favor of high-yield, risk-free central bank instruments. Furthermore, the persistent high yields on SRBI keep domestic lending rates elevated, increasing funding costs for businesses and limiting interest rate reductions. Experts suggest that while SRBI serves as an effective short-term buffer, long-term stability requires the government to address fundamental economic issues through credible fiscal policies and improved investment conditions.