June 6, 2026 | 05:23 pm
TEMPO.CO, Jakarta - Bank Indonesia (BI) is set to increase the remuneration paid by the central bank to the government. Remuneration represents the interest or return on the placement of government funds in Bank Indonesia.BI Governor Perry Warjiyo stated that this step aims to control the government's debt interest burden. "So far, we have provided remuneration for the government's account at BI. We will reconsider the amount of remuneration to ensure that the government's interest burden remains controlled," Perry told reporters at the House of Representatives (DPR) building on Saturday, June 6, 2026.Perry mentioned that this step is also a response to concerns from global credit rating agencies about government debt interest. He claims that increasing remuneration will decrease the government's burden of paying interest on government bonds (SBN).Finance Minister Purbaya Yudhi Sadewa stated that this incentive from BI will increase the government's cash flow. "So, even if new debts are issued, if there's an increase in interest, there's someone to cover it," he said to journalists at the DPR building.Previously, Purbaya revealed that S&P Global Ratings highlighted the government's debt interest ratio to income, which has exceeded 15 percent. The warning was disclosed by the S&P team to Purbaya during a meeting in Washington DC, United States, on Tuesday, April 14, 2026."They issued a warning, delved deeper into the discussion, that the interest payments compared to the income exceeded 15 percent," Purbaya said in his statement, quoted on Saturday, April 18, 2026. This year, Indonesia's interest payments on debt are expected to reach nearly Rp600 trillion, with a target of Rp599.5 trillion in the state budget (APBN). This is an increase from Rp552.1 trillion in 2024 and Rp488.4 trillion in 2023.Ilona Estherina contributed to the writing of this articleRead: Indonesia Shares Stabilization Strategies as Rupiah Slides Past 18,000Click here to get the latest news updates from Tempo on Google News