JAKARTA (TheInsiderStories) – Indonesia government will seek funds worth Rp605.3 trillion from bonds market, bilateral and multilateral loans in 2016, said one senior government official.
Director General of Financing and Risk Management of Finance Ministry Robert Pakpahan told press on Monday, the ministry plans to issue government bonds worth Rp532.4 trillion ($43.86 billion) and to seek bilateral loans amounting to Rp72.9 trillion to finance the government spending.
He elaborated more that the funds will be used to finance 2016 State Budget deficit -Indonesia is estimating 2016 budget deficit at 2.15 percent of gross domestic products (GDP) or Rp273.2 trillion —, as well as for capital injection amounting to Rp58.1 trillion, debt-refinancing at Rp256.0 trillion, debt portfolio management Rp3 trillion and T-bills cash management Rp15.0 trillion.
“So, the net of the government bonds to be issued will be around Rp330 trillion because there are some maturing bonds in 2016. The front loading in last December of $3.5 billion is part of it,” he said.
Robert stated that 61 percent of total gross issuance would be issued in first half of 2016, in which 24 percent will be global bonds. The government is now considering to issue Dimsum’ or Panda bonds beside US dollar, Euro, Yen and Islamic global bond.
In the State Budget for 2016, the government sets the total spending at Rp 2,095.7 trillion, while revenues were set at Rp 1,822.5 trillion, leaving a deficit of Rp273.2 trillion, or 2.15 percent of GDP.
Basic assumptions for the 2016 State Budget are as follows: economic growth is set at 5.3 percent, inflation at 4.7 percent, Rupiah exchange rate (to US dollar) is set at Rp 13,900 , government’s 3-months commercial paper (T-Bills) at 5.5 percent, Indonesia crude price at $50 per barrel , oil and gas lifting at 1.98 million barrels of oil equivalent per day (boepd) , oil lifting at 830,000 barrels per day and gas lifting is set at 1.15 million boepd. (*)