The Indonesian government plans to raise Rp973.6 trillion in loans to finance a budget deficit of Rp868 trillion next year, a Finance Ministry official has said.

“Throughout 2022, we will raise sovereign debt papers (SBN) worth Rp991.3 trillion or make loans worth Rp973.6 trillion,” Riko Amir, Director of Financing Strategy and Portfolio at the Directorate General of Financing and Risk Management of the Finance Ministry, said during a media briefing here on Monday.

Nearly 80 percent to 82 percent of the loans worth Rp973.6 will be derived from domestic sources and 18 percent to 20 percent from foreign currencies, he informed.

Gross SBN will be offered through an auction and non-auction system, including primary market, with government debt papers (SUN) reaching 69 percent to 72 percent, and state sharia government bonds (SBSN) touching 28 percent to 31 percent, he said.

He expressed the hope that the ratio of debts to the GDP next year will be lower than the projected 43.1 percent, like what was seen in 2021.

The target could be achieved thanks to supporting factors such as maximizing the use of unspent funds of 2021, enforcing the harmonized tax law, and implementing the voluntary disclosure program, he added.

Source: Antara News