Jakarta, CNBC Indonesia – The Ministry of Finance (Kemenkeu) continues to try to reduce the foreign share in the ownership of Indonesian debt securities.
This was conveyed by the Director General of Financing and Risk of the Ministry of Finance, Lucky Alfirman. He said, currently the proportion of foreign ownership continues to decline, in 2020 it will decrease to 25%, and in 2021 it will decrease to 19.3%.
In fact, if seen before the pandemic, the share of Indonesian SBN ownership by foreigners reached more than 38%-39%.
“It means we reduce foreign dependence and vulnerability,” said Lucky in the Launching and Opening Period of the Retail State Bonds Series ORI021, Monday (24/1/2022).
With a decrease in the foreign portion, it means that the government is no longer worried if there is a turmoil in global financial markets so that the rupiah exchange rate remains strong under any conditions.
Lucky added, the last key from foreign dependence is strengthening of the domestic investor base, including those of retail or individual nature. To that end, the government continues to explore domestic investors through the issuance of retail SBN.
Latest, The government through the Ministry of Finance’s DJPPR finally officially launched the Retail State Bond or ORI021 on Monday (24/1/2022).
The purpose of the launch of ORI21 is to strengthen the base of domestic investors, including retail or individual ones, as well as reduce dependence from outside (foreigners).
“Regarding the potential, we have used the SID to purchase our SBN. Currently, our number of investors is 550 thousand investors. SID registered in the capital market has reached 7.5 million. This is a very big opportunity,” concluded Lucky.