Workers count rupiah bills at a money changer in Jakarta. (Photo: thejakartapost) Jakarta (VNA) – Indonesia is preparing to offer 900.4 trillion Rp (62.35 billion USD) worth of sovereign debt papers (SBN) in the second half of the year as debt financing swells significantly to fund the country’s coronavirus response, Jakarta Post reported.
The Indonesian government had raised 630.5 trillion Rp worth of SBN as of June this year, including 2.5 billion USD from a three-tranche global sukuk (sharia-compliant bond) last month, according to the coountry's Finance Ministry’s financing strategy and portfolio director, Riko Amir.
President Joko Widodo signed in June Perpres No. 72/2020, a presidential regulation that regulates an increase in state spending and a widening state budget deficit amid Indonesia’s fight against the coronavirus pandemic.
The Indonesian government now officially states that the 2020 state budget deficit is expected to reach 1.03 quadrillion Rp or 6.34 percent of gross domestic product (GDP). A previous presidential regulation, Perpres No. 54/2020, which also amended the budget, stipulated a deficit of 5.07 percent.
The government has again increased its planned spending on Indonesia’s battle against the COVID-19 pandemic amid plunging tax revenue and a widening state budget deficit.
It is now setting aside 695.2 trillion Rp in funds for healthcare and economic stimulus spending to cushion the impact of the outbreak. This is the latest increase from the previous allocation of 677.2 trillion Rp, as the government ups its budget allocation for labor-intensive industries and regional administrations./.
VNA
