The Government Will Add $ 250 Trillion Debt in 2012

This year, government still relies on debt to finance budget shortfalls. Government plans to attract new debt amounted IDR 250 trillion. This is stated by Director General of Debt Management, Rahmat Waluyanto.

"We are targeting debts amounting up to IDR 250 trillion in 2012. It could be in the form of the issuance of government securities (bonds), sukuk, sharia, and others. Including Samurai Bond," said Rahmat.

He said the government is optimistic to reach IDR 250 trillion of debt through the issuance of debt securities, mainly due to the raise of Indonesia's investment grade ranking. The increase in ratings would make the cost of debt or interest government debt lower and cheaper.

"We are optimistic about IDR 250 trillion of debt can be achieved due to increased investment grade," said Rahmat.

As known, the total of Indonesian government debt up to November 2011 had reached USD 1816.85 trillion or an increase of IDR 48.81 trillion compared to October 2011 (USD 1768.04 billion).

If compared December 2010 debt (up to USD 1676.85 billion), the amount of the November 2011 debt increased up to IDR 140 trillion. Indonesian debt also rose from 27.5% in October 2011 to 28.2% in November 2011 as per ratio to GDP.

Source: Detik Finance

Government Auction 5 Series of Government Securities

The government will soon auction off five series of government securities (Surat Utang Negara - SUN) with a total indicative value of IDR 7 trillion on January 10, 2012. The fund will be used to fulfill part of the state budget 2012 target.

Government Securities

The five series are SPN03120411 SUN series (new issuance) with an interest payment discount and the due is on April 11, 2012.

SPN012130111 Series (new issuance) with an interest payment discount and the due is on January 11, 2013.

FR0060 Series (reopening) with a fixed interest rate of 6.250 percent, maturing on April 15, 2017, the coupon payment is done on every April 15 and October 15.

Others, FR0061 Series (reopening) with a fixed interest rate of 7.000 percent, maturing on May 15, 2022, coupon payments is done on every May 15 and November 15.

FR0058 Series (reopening) with a fixed interest rate of 8.250 percent, maturing on June 15, 2032, coupon payments is made on every June 15 and December 15.

Directorate General of Debt Management of Ministry of Finance, stated on the press release said the sale of these government securities would be done by the auction system organized by Bank Indonesia.

This will be an open auction by using multiple price method. Winner of the auction to bid non-competitive will pay in accordance with the weighted average yield of the winning competitive bid.

Source: Kompas

Foreign Ownership in Government Securities Reached IDR 223.86 trillion

Foreign ownership in state securities or government securities (SBN – Surat Berharga Negara) reached IDR 223.86 trillion on December 15, 2011 while on previous day was IDR 224.11 trillion.

SBN in Indonesia

This data was quoted from the Directorate General of Debt Management Ministry of Finance, this weekend. The mutual fund industry has SBN worth IDR 47.03 trillion on December 15, 2011 compared to the beginning of December 2011 at IDR 46.94 trillion. The insurance industry has SBN valued at IDR 93.04 trillion as of December 15, 2011.

Meanwhile, the pension funds have SBN valued at IDR 34.53 trillion as of December 15, 2011. Securities firms have IDR 20 billion worth of government securities and others amounting up to IDR 52.86 trillion. The banking industry still has the highest record on the ownership of government securities valued at IDR 283.16 trillion as of December 15, 2011. Total tradable government securities (SBN) valued at IDR 723.76 trillion.

Source: Analisa