Jakarta (VNA) – The Indonesian government is planning to issue Samurai and Eurobond bonds in the second half of 2020 to fund the fiscal deficit, according to a finance ministry official.

There are plans to issue Samurai and Eurobonds in the second half, Deni Ridwan, a director at the finance ministry, told media in a recent teleconference but he denied to specify the amount and the date of the issuances.

In the first quarter of this year, the country has issued state bonds worth 221.4 trillion rupiah (15.7 billion USD), including international bonds.

According to head of the fiscal policy agency at the ministry, Febrio Kacaribu, the COVID-19 pandemic created a new deficit of 6.54 percent of the country’s GDP or 1,039 trillion rupiah from previously 5.07 percent of the GDP or 852.9 trillion rupiah.

Its economic growth is predicted to be negative 0.4 percent with very severe scenarios and 2.3 percent with severe scenarios.

The country’ budget revenue is also predicted to decrease from 1.761 quadrillion rupiah to 1.699 quadrillion rupiah and government spending rises from 2.61 quadrillion rupiah to 2.738 quadrillion rupiah to curb the impact of COVID-19 to the economy.

The government’s prepared cost to handle the epidemic is 677.20 trillion rupiah while the cost of the National Economic Recovery Programme without entering health posts is 589.65 trillion rupiah, including 220.2 trillion rupiah for stimulus for demand side related to social protection and 384.45 trillion rupiah to support the business community.

Based on the proposed 2020 State Budget, Indonesia plans to issue the bonds worth 1.29 quadrillion rupiah and repay the mature bond 433.4 trillion rupiah./.