TEMPO.CO, Jakarta - The Ministry of Finance spoke up about the issuance of Samurai Bonds, the yen-denominated bond, amid the Japanese recession.

"Will we still issue Samurai Bonds? Of course, we will look at what is required and the development in the economy, as well as financial market conditions in Japan," said the Director General of Financing and Risk Management at the Ministry of Finance, Suminto, on Thursday.

Apart from that, the ministry will also consider debt needs as well as the performance of the State Budget (APBN). According to Suminto, these various considerations are a reflection of the principles of debt financing, namely flexible, measured, and opportunistic.

"So in the context of size, timing of issuance, instruments, as well as the currency mix, we will really adjust to developments," explained Suminto.

On the same occasion, Deputy Minister of Finance, Suahasil Nazara, said that Japan's economy experienced a slowdown for two consecutive quarters. This is what is technically called a recession.

"The Japanese economy contracted to minus 0.8 percent in Q3 and minus 0.1 percent in Q4," said Suahasil.

Nevertheless, he hoped that the Japanese economy could rebound in 2024 as projected IMF which predicted Japan’s economy would grow 0.9 percent this year.

"We will continue to monitor the situation since Japan is one of our biggest export destinations and one of the sources of our foreign direct investment," he concluded.

AMELIA RAHIMA SARI

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