Foreign Ownership in Indonesian Bonds Plummets: Former BI Governor Reveals Details

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The percentage of foreign ownership in Indonesian Government Bonds (SBN) has decreased,a trend that former Bank‍ Indonesia Governor Agus Martowardojo⁣ believes warrants serious attention.

Martowardojo noted that foreign ownership of ⁣SBN peaked at 41%‍ in ⁢2018. Currently, foreign‍ ownership stands ⁣at 13%.

“I recall that when I was at Bank Indonesia‍ in 2018, foreign investors held 41% of the total Government Bonds, the highest level at ‍that time.Now, foreign investors hold only 13% of Indonesian Government bonds. A decline from 41% to ⁢13%⁢ is a significant issue that needs to be addressed,” Martowardojo stated⁣ at the Indonesia business Council⁤ (IBC) Business Outlook ⁤event at the Mulia Senayan Hotel,‍ Jakarta, on Wednesday (January 14, 2026).

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According to Martowardojo, this shift shouldn’t be viewed solely with optimism⁣ regarding increased ⁢domestic ownership of SBN.

“We can’t simply say that we now have the strength for domestic‍ investors⁢ to own these government bonds.That’s not sufficient,” he emphasized.

Data from Indonesia’s ⁤balance of payments⁤ reveals a drastic change in financial transactions. In 2024, Indonesia’s financial transactions recorded⁤ a surplus of‍ US$17 billion.

Though, in the first nine months of 2025, the balance of payments position reversed to a deficit of approximately US$12 billion. this,according to Martowardojo,is due ⁣to the continued decline in foreign portfolio investment in SBN.

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