Indonesian government seeks funds Rp900.4 trillion (US$63.85 billion) from the state bond issuances to finances the 2020 State Budget deficit, said the government official today (07/02) - Photo by Finance Ministry Office

JAKARTA (TheInsiderStories) – Indonesian government seeks funds Rp900.4 trillion (US$63.85 billion) from the state bond issuances to finances the 2020 State Budget deficit, said the government official today (07/02). Based on the new presidential decree, the country set the budget deficit Rp1,039.2 trillion or 6.34 percent of Gross Domestic Products (GDP).

According to director at finance ministry office, Riko Amir, the debt issuance will be fulfilled in several instruments like SUKUK Retail as much as Rp40 trillion, withdraw new or non-debt loans using the state treasury, issues special scheme to Bank Indonesia, private placement, and global bond with three types like US Dollar denominations, Samurai Bonds, and global SUKUK. For domestic market, the director general office will hold 12 auctions until the end of 2020.

End of June, Joko Widodo has signed the President Regulation Number 72 of 2020 as a revision of the Presidential Regulation Number 54 of 2020 on the revision of the 2020 State Budget. Based on the decree, the deficit widens from Rp852.9 trillion (US$60.49 billion) to Rp1,039.21 trillion or 6.34 percent of gross domestic products (GDP), said the decree.

The regulation stated, the government spending will expanded to Rp2,739.16 trillion, consisting of the central government expenditure of Rp1,975.24 trillion, including the additional spending for COVID-19 responses worth of Rp358.88 trillion and transfers to regions and village funds of Rp763.92 trillion. The state revenues targets also revised from Rp1,076.9 trillion to Rp1,699.94 trillion.

The government said, the revision was made by considering changes in the economic conditions and to deal on the COVID-19 pandemic. The government hopes that the revised state budget will drive the breakthroughs and acceleration of the epidemic responses as conveyed by the head of states.

Recently, finance minister, Sri Mulyani Indrawati stated, the COVID-19 costs is predicted worth of Rp677.20 trillion consisted of Rp87.55 trillion health. Then, social protection and direct aid Rp203.3 trillion.

To support micro, medium, small, medium enterprises (MSMEs) and business incentives Rp120.61 trillion. For financing and corporation Rp44.57 trillion. And, for the government institution, sectoral, and regional government Rp97.11 trillion.

She continued, the government also prepared capital injection private and state-owned enterprises (SOEs) with total amount Rp123.01 trillion enjoyed by thousands of entrepreneurs who are considered eligible to receive the tax incentives. Support for 12 SOEs totaling Rp52.57 trillion, of which PT Perusahaan Listrik Negara Rp45.4 trillion, PT Hutama Karya Rp11 trillion, and PT Kereta Api Indonesia Rp3.5 trillion.

Then, PT Bahana Pembinaan Usaha Indonesia Rp6.27 trillion, PT Permodalan Nasional Madani Rp2.5 trillion, PT Perumnas Rp650 billion, PT Pertamina Rp37.83 trillion, ITDC Rp500 billion, Perum Bulog Rp10.5 trillion, PT Jamkrindo Rp12 trillion, PT Garuda Indonesia Tbk (IDX: GIAA), PT Krakatau Steel Tbk (IDX: KRAS), and PT Perumnas. For the two publicly listed wil determines letter, said the minister.

Based her ministry calculation, the total tax incentives provided will reach Rp123.01 trillion, consisting of a reduction income tax, exemption of import tax, discount tax by 30 percent, and value added tax refunds will accelerated. She added, there are also additional income tax and other stimulus reserves amounting to Rp14 trillion and Rp26 trillion, respectively.

US$1: Rp14,100

Written by Staff Editor, Email: theinsiderstories@gmail.com