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Govt to reduce bond issues in light of budget surplus
The government is planning to reduce bond issues in view of a budget surplus amounting to 1.12 percent of GDP and realizing 33.66 percent of its full-year debt financing target in the first quarter.
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Finance Minister Sri Mulyani Indrawati speaks on July 1, 2022 during a press briefing on the government’s voluntary disclosure program, also dubbed the second tax amnesty. (DJP/Public Relation)
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o:p>The government thinks it might not need to borrow as much money as initially planned for 2023, as the state budget recorded a surplus in the fourth month of the year.
Finance Minister Sri Mulyani Indrawati revealed that Rp 240 trillion (US$16.1 billion) in debt financing had been raised this year to date from selling government bonds.
The ministry has a full-year debt financing target of Rp 712.9 trillion.
“We are anticipating higher revenue, so we will reduce bond issues in line with our relatively good financial condition in the first quarter,” Sri Mulyani told an online press conference on Monday, though she did not specify the total bond issues planned for this year.
The ministry’s director general of budget financing and risk management, Suminto Sastrosuwito, said the government would adjust the debt issuance with the state’s financing needs and cash position, as well as market conditions.
“With this strategy, we are expecting our bonds issuance to be cost-efficient,” Suminto told reporters at the same event.
The state budget posted on April 30 a surplus of Rp 234.7 trillion, or 1.12 percent of Indonesia’s gross domestic product (GDP), as national revenue exceeded spending.
