Minister Of Finance Sri Mulyani: Financing Realization Through Issuance Of Debt Instruments Reaches IDR 150.4 Trillion As Of May 2023

JAKARTA - The Ministry of Finance (Kemenkeu) noted that the realization of financing through debt issuance reached IDR 150.4 trillion as of May 2023.

"Realization until May debt financing reached Rp150.4 trillion. This compared to last year's 64.9 percent increase," said Finance Minister Sri Mulyani Indrawati in a press conference for the June 2023 edition of the KiTa State Budget, quoted from Antara, Tuesday 27 June.

In May 2022, the Ministry of Finance recorded a debt financing realization of IDR 91.2 trillion.

The Minister of Finance explained that the high debt issuance until May 2023 is in line with this year's financing management and timing strategy.

However, the value of the realization of financing through debt issuance as of May 2023 has only reached 21.6 percent of the target in the State Revenue and Expenditure Budget (APBN) of IDR 696.3 trillion.

The low realization of the financing was due to state revenues which continued to grow rapidly until May 2023.

"Because we are indeed in a situation where the receipt is quite strong and the budget surplus causes us to all carry out various strategies to reduce our debt insurance," said Sri Mulyani.

In detail, the issuance of debt through Government Securities (SBN) reached Rp144.5 trillion, grew 92 percent year-on-year (yoy) and was equivalent to 20.3 percent of the APBN target.

This growth was supported by the contribution of the issuance of the Samurai Bond amounting to 104.8 billion Japanese yen or equivalent to 760 million US dollars.

Of the total issuance of the Samurai Bond, there are climate action-oriented debt securities, namely the blue bond of 20.7 billion Japanese yen.

The State Treasurer explained that investment fund communities around the world show a tendency to be interested in the issuance of debt securities with environmental themes, whether blue bonds, green bonds, or SDG's bonds.

"Because this is indeed a global trend in terms of financing. So, Indonesia is already in a fairly good position in utilizing global appetites," said the Minister of Finance.

The realization of financing through loans until May 2023 was recorded at IDR 5.9 trillion. This value contracted by 63.2 percent from the same period last year of IDR 16 trillion.