Indonesia auctions Rp32 trillion in state debt to fund 2026 budget

The Indonesian government is implementing several strategies to manage and expand development financing for 2026. The Directorate General of Financing and Risk Management (DJPPR) under the Ministry of Finance is scheduled to auction nine series of state securities (SUN) on Tuesday, September 15, 2026. The auction aims to raise an indicative target of Rp32 trillion to support the 2026 state budget (APBN), with a maximum target of 150% of the indicative amount.

Parallel to these auctions, the government is utilizing new legislative frameworks, specifically Law No. 4 of 2026, to allow investment and operational holdings to issue debt or accept loans. This approach aims to expand productive financing sources outside the direct state budget. However, analysts note that while entities like Danantara can mobilize large-scale funding for strategic sectors such as infrastructure and energy, this model shifts debt from the government's balance sheet to state-owned entities, potentially creating new fiscal risks if these strategic projects fail.