Indonesian government looking to sell Samurai and Eurobonds in the second semester (2H) of 2020 to fund the fiscal deficit, said finance ministry' official on Thursday (06/04) - Photo by ING

JAKARTA (TheInsiderStories) – Indonesian government looking to sell Samurai and Eurobonds in the second semester (2H) of 2020 to fund the fiscal deficit, said finance ministry’ official today. In the first quarter (1Q) of this year, the country has issued state bond Rp221.4 trillion (US$15.70 billion), including the global bond.

“”There are plans to issue Samurai and Eurobonds in the second half,” a director at finance ministry, Deni Ridwan told media in a tele conference but he deny to specify the amount and the date of the issuances.

So far, finance ministry has released two series of US Dollar bond, namely RI0230 worth $1.2 billion with tenure 10 year and RI0250 of $800 million for a 30-year tenure. In the Euro series called RIEUR0227 worth of EUR1 billion ($1.12 billion) with a tenure of seven years.

According to head of fiscal policy agency at the ministry, Febrio Kacaribu, the COVID-19 pandemic created a new deficit of 6.54 percent of gross domestic products (GDP) or Rp1,039 trillion from previously 5.07 percent of the GDP or Rp852.9 trillion. Growth is predicted to be negative 0.4 percent with very severe scenarios and 2.3 percent with severe scenarios.

The country’ revenues is also predicted to decrease from Rp1,760.9 trillion to Rp1,699.1 trillion and government spending rises from Rp2,613.8 trillion to Rp2,738.4 trillion to curb the impact of COVID-19 outbreak to the economy. The government prepared cost to handle the epidemic Rp677.20 trillion.

Then, cost of the National Economic Recovery Program without entering health posts is Rp589.65 trillion, divided into stimulus for demand side related to social protection Rp220.20 trillion and from side to support the business world Rp384.45 trillion. Based on the proposed 2020 State Budget, the government targeting gross issuances of the bonds worth of Rp1,289.3 trillion and repay the mature bond Rp433.4 trillion.

Finance minister Sri Mulyani Indrawati revealed, beside from the bond issuances, the budget deficit and other spending around Rp150 trillion will finances from the surplus budget Rp70.46 trillion, endowment funds, public service agencies, private placements from state-owned enterprises, Indonesia Deposit Insurances, Hajj Fund, others, as well as multilateral loans up to $8 billion.

US$1: Rp14,100, EUR0.89

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