The government will expand the domestic investor base to meet the financing needs of the 2025 State Budget (APBN). This method is considered effective in meeting budget financing in recent years.
“In managing debt, we continue to try to expand our investor base, so that the number of investors, especially retail, individual Indonesian citizens, is getting bigger,” said Deputy Minister of Finance I Suahasil Nazara in a working meeting with Commission XI of the DPR, in Jakarta, Monday (9/9).
The development of domestic investors in the government bond market (SUN) has a fairly good trend. This is because the number continues to increase. In 2018, for example, domestic investors were recorded at 404 thousand. Now, the number has reached 857 thousand or has doubled.
Therefore, the government also plans to increase retail bond issuance. In 2023, the realization of retail SUN issuance was recorded at IDR148 trillion, while in the current year, the value of retail SUN issued reached IDR83 trillion.
“This direction is continuously increasing, so that all citizens of our country who have the ability and can participate in development through investment in SBN, and hopefully we will continue this,” explained Suahasil.
The absorption capacity of domestic investors that has increased from year to year, he continued, indirectly suppresses the risk of government debt. This is because foreign investors holding government securities continue to shrink.
“Previously in December 2018, 2019, foreign ownership, non-residents tradeable Our SBN is around Rp38-Rp39 trillion and is always raised as one form of Indonesia‘s fragility. Now non-resident ownership of SBN tradeable domestic is only around under 15%. This means that the absorption capacity of domestic investors continues to increase, and we will continue this,” explained Suahasil. (Z-11)
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Table of Contents
- 1 Here are some People Also Ask (PAA) questions related to the title **”Indonesia’s Efforts to Expand Domestic Investor Base and Encourage Foreign Investment.”**
- 2 Here are some potential PAA (People Also Ask) questions related to the title “Indonesia’s Efforts to Expand Domestic Investor Base and Encourage Foreign Investment”:
Indonesia’s Efforts to Expand Domestic Investor Base and Encourage Foreign Investment
As the Indonesian government prepares for the 2025 State Budget (APBN), it has announced plans to expand its domestic investor base to meet financing needs. This move is seen as an effective way to manage debt and promote economic growth. In recent years, the country has made significant progress in developing its domestic investor base, particularly in the government bond market (SUN).
Growing Domestic Investor Base
According to Deputy Minister of Finance I Suahasil Nazara, the number of domestic investors in the SUN market has been increasing steadily. In 2018, there were 404,000 domestic investors, and this number has now more than doubled to 857,000. This growth is attributed to the government’s efforts to increase retail bond issuance. In 2023, the realization of retail SUN issuance reached IDR148 trillion, and in the current year, the value of retail SUN issued has reached IDR83 trillion.
To further encourage domestic investment, the government plans to continue increasing retail bond issuance. This move is expected to provide more opportunities for individual Indonesian citizens to participate in the country’s economic development through investment in SBN.
Foreign Investment Opportunities
In addition to developing its domestic investor base, Indonesia is also actively promoting foreign investment. The country has established the Indonesia Investment Authority (INA), a sovereign wealth fund aimed at maximizing economic impact and growing wealth [[2]]. The INA provides a platform for foreign investors to participate in Indonesia’s economic growth and development.
Foreign investors can also set up a limited liability company in Indonesia, which is required to be domiciled within the territory of the Republic of Indonesia and must comply with Indonesian law [[1]]. This provides a clear framework for foreign investors looking to establish a presence in the country.
Furthermore, the Indonesian government has been implementing strategic initiatives to establish family offices, private entities aimed at managing the business affairs of high net worth individuals and families [[3]]. This move is expected to attract more foreign investment and provide additional opportunities for domestic investors.
Conclusion
Indonesia is taking significant steps to expand its domestic investor base and promote foreign investment. The country’s efforts to increase retail bond issuance, establish the INA, and set up family offices are all aimed at promoting economic growth and development. With a growing domestic investor base and a clear framework for foreign investment, Indonesia is poised to become an attractive destination for investors.
Keyword: Indonesia, domestic investor base, foreign investment, government bond market, State Budget, Indonesia Investment Authority, family offices.
Indonesia’s Efforts to Expand Domestic Investor Base and Encourage Foreign Investment
As the Indonesian government prepares for the 2025 State Budget (APBN), it has announced plans to expand its domestic investor base to meet financing needs. This move is seen as an effective way to manage debt and promote economic growth. In recent years, the country has made significant progress in developing its domestic investor base, particularly in the government bond market (SUN).
Growing Domestic Investor Base
According to Deputy Minister of Finance I Suahasil Nazara, the number of domestic investors in the SUN market has been increasing steadily. In 2018, there were 404,000 domestic investors, and this number has now more than doubled to 857,000. This growth is attributed to the government’s efforts to increase retail bond issuance. In 2023, the realization of retail SUN issuance reached IDR148 trillion, and in the current year, the value of retail SUN issued has reached IDR83 trillion.
To further encourage domestic investment, the government plans to continue increasing retail bond issuance. This move is expected to provide more opportunities for individual Indonesian citizens to participate in the country’s economic development through investment in SBN.
Foreign Investment Opportunities
In addition to developing its domestic investor base, Indonesia is also actively promoting foreign investment. The country has established the Indonesia Investment Authority (INA), a sovereign wealth fund aimed at maximizing economic impact and growing wealth [[2]]. The INA provides a platform for foreign investors to participate in Indonesia’s economic growth and development.
Foreign investors can also set up a limited liability company in Indonesia, which is required to be domiciled within the territory of the Republic of Indonesia and must comply with Indonesian law [[1]]. This provides a clear framework for foreign investors looking to establish a presence in the country.
Family Offices
Furthermore, the Indonesian government has been implementing strategic initiatives to establish family offices, private entities aimed at managing the business affairs of high net worth individuals and families [[3]]. This move is expected to attract more foreign investment and provide additional opportunities for domestic investors.
Consolidation of Efforts
Indonesia is taking significant steps to expand its domestic investor base and promote foreign investment. The country’s efforts to increase retail bond issuance, establish the INA, and set up family offices are all aimed at promoting economic growth and development.
To attract more foreign investors, Indonesia offers a favorable environment for investment, with different regions offering business-friendly policies and investment incentives [[3]]. The country’s stable economic growth of over 5% per annum, competitive and predictable wages, and a large consumer market of over 130 million people make it an attractive destination for foreign investment [[2]].
Indonesia’s efforts to expand
