Government to raise 973 trillion rupees in loans to finance budget deficit

Throughout 2022, we will raise Sovereign Debt Securities (SBN) worth Rs 991.3 trillion or provide loans worth Rs 973.6 trillion

Jakarta (ANTARA) – The Indonesian government plans to raise 973.6 trillion rupees in loans to finance a budget deficit of 868 billion rupees next year, a finance ministry official said.

“Throughout 2022, we will raise Sovereign Debt Securities (SBNs) worth Rs 991.3 trillion or provide loans worth Rs 973.6 trillion,” Riko Amir, Chief Strategy Officer and the financing portfolio at the General Directorate of Financing and Risk Management of the Ministry of Finance. , said Monday at a press briefing here.

Almost 80% to 82% of loans worth Rp 973.6 will come from domestic sources and 18% to 20% from foreign currency, he informed.

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Gross SBN will be offered through an auction and non-auction system, including in the primary market, with government debt securities (SUN) reaching 69% to 72% and government bonds of sharia (SBSN) reaching 28% to 31%, he said.

He expressed hope that the debt-to-GDP ratio next year will be lower than the projected 43.1%, as seen in 2021.

The goal could be achieved through supporting factors such as maximizing the use of unspent funds from 2021, the application of the harmonized tax law and the implementation of the voluntary disclosure program, he said. he adds.

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