JAKARTA (TheInsiderStories) – Good Morning! Indonesian government to spent Rp1,634.3 trillion (US$112.71 billion) next year, said President Joko Widodo while gave the budget execution lists at the State Palace on Tuesday (12/11).
He asked the state apparatus to focus on using the state expenditure budget for human resource development programs, increasing competitiveness and strengthening exports.
Widodo also emphasized that the state apparatus should not to be corrupt and wasteful in the budget. While, Finance Minister Sri Mulyani Indrawati said, the government has determined state revenues in 2019 will be Rp2,165.1 trillion.
Then, the state expenditure in 2019 amounted to Rp 2,461.1 trillion, allocated through ministries and institutions in the amount of Rp855.4 trillion and for non-institutions and ministries of Rp 778.9 trillion. The state budget was also transferred to the regions and village funds amounting to Rp 826.8 trillion.
In addition, the government will begin to develop disaster risk funding, both through the state budget and state property insurance programs. Then, the government will also develop funding sources for accelerating infrastructure that not only come from public funds and debt.
Furthermore, Indonesian Government is trying to accelerate
development of a special economic zone (SEZ) in the first semester of 2019. It will start operating in Bitung in North Sulawesi, Morotai in North Maluku, and Arun Lhokseumawe
In the financial market, Rupiah continued its depreciation, slumping by 0.66 percent to14.613 against the US dollar yesterday, reaching it’s worst position in December. Foreign funds also recorded Rp1 trillion net sell in the stocks market, dragging on the Jakarta Composite Index which declined by 0.56 percent to 6,076.58.
Meanwhile, the Finance Ministry will issue government bond worth Rp826 trillion, consisting of Rp661 trillion in Rupiah and Rp165 trillion in foreign exchange for 2019 State Budget. The government will use Rp382.74 trillion for paying matured debt next year and Rp54 trillion for cash management. The state securities will be issued in stages, around 50-60 percent of the gross target in first semester.
Taxi operator, PT Express Transindo Utama Tbk (IDX: TAXI)’s plan to restructure its Rp1 trillion bond obligation finally gets a bondholders permit, after several rejections. Around 91 percent of the bondholders attended the meeting and agreed to the restructuration package.
Express owned by tycoon Peter Sondakh, plans to convert Rp400 billion of bond principal 2014 to company shares. This conversion will be executed after getting shareholders permission in another extraordinary meeting.
Besides, the rest of Rp600 billion bond principal will be converted to non-interest bond that will be due on Dec. 31, 2020. This part of the bond principal conversion will be amortised every three months based on the sale of collateral, from Express taxi’s vehicles and land.
May you have a profitable day!