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Indonesia's sovereign bond issuance exceeds target
Publication Date : 02-05-2014
The Indonesian government’s front-loading strategy in issuing its sovereign bonds may result in actual bond issuance exceeding its half-year target.
The Finance Ministry’s debt management office director general ,Robert Pakpahan, said the government bond issuance had already reached 205.4 trillion rupiah (US$17.77 billion) as of April 29, or 55.45 per cent of the target of 360 trillion rupiah stipulated in the state budget. He said his office would issue more bonds later in the first half.
“If we are looking beyond our target realisation until the end of April, maybe we could achieve 60 per cent [of the full-year target by the end of the first half],” Robert said on Wednesday, as reported by kontan.co.id.
He said an aggressive bond issuance program in the first half of the year formed part of a strategy to prepare the government in case the state budget deficit this year would widen. He added that if the deficit widened, the government would still have room to increase expenditures given the proceeds from the sovereign bond issuance.