This is the RAPBN strategy for debt financing of 2019



Illustration of the debt – special

Bisnis.com, JAKARTA – The government is still paying attention to money markets that are still volatile before continuing with the determination of the debt financing strategy in 2019.

Luky Alfirman, Director General of Finance and Risk Management at the Ministry of Finance, said the government is still paying attention to exchange rate volatility to weigh the possibility of issuing debts in the form of reduced foreign exchange.

"Later, if we deliver the strategy of 2019 in December, all later, how many growth problems, the composition of the non-Rupiah rupiah, the sukuk and the conventional, we will see," he explained at the Indonesian stock exchange on Monday (8). / 20) / 2018).

He said that the direction of the policy would adapt to the lower budget deficit. That means that debt financing will continue to fall.

"We reduced the deficit, 2.19% this year, the outlook is 2.12%, and we will have a 1.84% deficit next year, so a consequence of the increase in debt will be reduced," he said. from.

The government focuses on debt financing in 2019 to Rp. To reach 359.3 trillion. This value decreased by 7.2% compared to the debt financing objective of Rp. 387.4 trillion in 2018.

SBN publication

Based on the RAPBN attitude of 2019, the government will carry out debt financing by issuing Government Securities (SBN) of Rp. 386.2 trillion and recordings of Rp. 26.9 trillion.

The strategy that will be implemented by the government in general is to increase the efficiency of the debt burden, actively manage debts through ALM, optimize the public participation in the domestic bond market (financial deepening), Management of foreign loans selective and optimization of cash loans.

Luky also revealed that the government will continue to implement a frontloading policy next year. "As long as the market remains volatile, as long as we stand for it uncertainty, our best strategy is to do frontloads. We will always keep in mind that what happens on the market in the second half of 2018, if it can still be considered very volatile, 2019 will most likely be continued, then we can do the frontload sooner, "he explains.

According to Luky, by doing front loading this government can anticipate uncertainty with high returns at the end of the year.

"That is an advantage front loading, " he said.

Debt risk

Meanwhile, the debt due in 2019 Rp. Achieve 409 trillion. The amount of the debt in 2019 is the largest.

"This year IDR 400 trillion will be the highest in 2018-2019. 2020 is much lower, much smaller than IDR 400 trillion, so that by 2020 our debt share will be better," he explains.

Minister of Finance Sri Mulyani Indrawati explained that the government would use government bonds (SUN), whose demand was high to finance the debts.

"We will benefit from our extraordinary and rather good demand from SUN because Indonesia's reputation as an investment grade and also the cautious tax coalition has led SUN's demand to be quite large," he explained.

The Indonesian debt, he continued, will be maintained so that it is sustainable from the fiscal side and is maintained in the range of less than 30%, in the future it will be lower than 29.8%. The debt ratio, he continued, includes the lowest in the world.

Moreover, the APBN deficit, which he continues to decline, is proof that the government continues to maintain the financial risk in a professional and credible manner.

"This is because what we risk is the economy and well-being and security of the Indonesian people," he said.

Publish Saving Bond

State Secretary of the Ministry of Finance Loto Srinaita Ginting said that the government still had to consult with the DPR on the financing strategy in 2019.

What is clear, however, is that the advanced government continues to reduce dependence on foreign currency debt. Issuance of SBN in the form of foreign currencies will also be reduced.

The government continued and will prioritize domestic financing in such a way that in 2019 the Saving Bond Retail (SBR) will be more than this year. He was still reluctant to answer the number.

As is known, the government plans to issue 3 rupiah savings bonds issued by retail investors until the end of the year. In the draft budget for 2019, the value of sukuk issuance of project financing is planned on Rp. 28.4 trillion.

The issue included the project financing of the Ministry of Transport of Rp. 7.99 trillion, the Ministry of Public Works and Housing Rp 16.88 trillion, the Ministry of religion Rp 2.7 trillion, and the Ministry of Environment and Forestry Rp 106.2 billion.

In addition, the issuance for the Ministry of Research, Technology and Higher Education is planned for Rp 498.1 billion, the National Standardization Agency (BSN) Rp 50 billion and the Indonesian Institute of Sciences (LIPI) Rp 240 billion.

In the meantime, debt collection amounts to Rp. 26.9 trillion from domestic and foreign loans.

Domestic loans are estimated at Rp 482.4 billion or lower Rp 3.1 trillion compared with 2018. These domestic loans are withdrawals of domestic loans (gross) of R9, 1 trillion and the main tranches of domestic debts of Rp1.4 trillion.

Subsequently, the external debt is estimated to amount to 27.4 trillion IDR, consisting of the withdrawal of foreign loans (gross) of IDR 58.9 trillion and the main payments of foreign loans of IDR 86.3 billion.


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