- The loosening US financing condition and the expectedly lower SBN issuance in 2024 may improve Indonesian sovereign bonds’ attractiveness despite the pile of maturing bonds in the upcoming months.
- The current government’s higher use of the excess budget balance (SAL) may leave the upcoming government with a smaller cash coffer, which could increase their dependency on the SBN market.
- High interest payments and shorter debt repayment schedules may reduce the wiggle room for future governments to decide their fiscal posture.
