Govt to Cut Back on Bond Issuance Next Year
4 December 2014 01:20 WIB
TEMPO.CO, Jakarta - The government plans to cut back on refinancing the budget deficit by issuing State Securities (SBN), including conventional and sharia bonds, starting next year. One of the reasons for this decision was the subsidized fuel price adjustment.
"With the fuel price adjustment, there is a potential decline in the 2015 Amended State Budget's deficit target, which lowers the financing target from bond issuances," said Finance Minister Bambang Brodjonegoro in the Investor Gathering 2014 event, yesterday.
November's subsidized fuel hike by Rp2,000 per liter is projected to save the state budget by Rp110 trillion to Rp140 trillion.
Schneider Siahaan, the Finance Ministry's debt portfolio strategy director, said reducing bond issuances by securities 0.2 percent next year will put the issuance value at two percent of Gross Domestic Product (GDP). "It is worth approximately Rp20 billion to Rp22 billion," he said.
JAYADI SUPRIADIN
