Wednesday, July 18, 2012

INDONESIA - CAPITAL MARKETS - Government To Issue IDR42 Trilliion Bonds

www.bisnis.com - JAKARTA: The government projected the Government Bond issuance valued at IDR42 trillion throughout semester II/2012 to cover state budget deficit in 2012 which reached IDR190.8 trillion.

Ministry of Finance’s Debt Management Director General Rahmat Waluyanto said the government bond issuance realization with front loading strategy up to semester I/2012 has reached approximately 55% of the issuance target (gross) of IDR271 trillion.

Meanwhile, based on data from the Ministry of Finance, throughout the semester I/2012 government has scooped financing from government bond issuance amounting to IDR117.6 trillion or 73.68% of the 2012 revised state budget target of IDR159.6 trillion.   (source)


"The financing strategy on the second half of 2012 keep prioritizing the issuance of rupiah-denominated government bonds in the country," Rahmat told Bisnis on Wednesday (11/07/2012).

In addition to government bond issuance in domestic market, the government also plans to issue global sukuk and Samurai bond in the second half of 2012.
 
To cover 2012 state budget deficit which expected to widen from 2.23% to 2.3% - 2.4% of GDP, the government plans to disburse excess budget balance in semester II/2012 amounting to IDR61.2 trillion and withdraw foreign loan of IDR42.8 trillion.

Moreover, the government has a financial obligation that must be paid to principal repayments of foreign debt amounting to IDR25.3 trillion, subsidiary loan agreement of IDR0.8 trillion, and government investment funds and the state capital participation of IDR18.8 trillion.
 
Meanwhile, the total deficit financing in the first half of 2012 has reached IDR101.6 trillion. Thus, the state budget financing in the second semester of 2012 is projected to reach IDR89.1 trillion. (T07/faa)

Source: http://www.bisnis.com/articles/government-to-issue-idr42-trilliion-bonds  - July 12, 2012 

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