Sri Mulyani's Children: Government Confirms 2022 Financing Is Dominated By SBN Domestic

JAKARTA - The government through the Ministry of Finance (Kemenkeu) has emphasized that it will optimize financing from domestic sources to support the State Revenue and Expenditure Budget (APBN) for the whole of 2022.

Director of Strategy and Financing Portfolio of the Ministry of Finance Riko Amir said that the portion of the release of Government Securities (SBN) will be dominated by the domestic market with a maximum percentage of 82 percent.

"Meanwhile, SBN denominated in foreign currency (forex) is around 18 percent," he said when giving a press statement through virtual channels, Monday, December 13.

According to Riko, the decision was based on the impact of the release of SBN by foreign investors and also the consideration of the costs that must be borne by the government.

“The outlook for the issuance of SBN continues to decline for this year. The government hopes that the same thing will happen in 2022," he said.

In addition, the projected reduction in debt securities released by the government also takes into account the remaining excess budget financing (silpa) for the 2021 period.

For information, in the 2022 State Budget Law, the government and the DPR agreed to set a budget deficit at IDR 868 trillion, equivalent to 4.85 percent of gross domestic product (GDP). This amount was obtained from a larger spending budget of IDR 2,714.1 trillion compared to the revenue target of IDR 1,846.1 trillion.

Meanwhile, according to VOI records, the position of government debt as of the end of October 2021 was at Rp. 6,687.28 trillion, equivalent to 39.69 percent of gross domestic product (GDP).

This book is lower than the position in September 2021 which was Rp. 6,711.52 trillion or 41.38 percent of GDP.

"This decrease was partly due to a decrease in debt from Foreign Currency Government Securities by Rp. 13.85 trillion and a decrease in loans by Rp. 15.26 trillion," said the November 2021 edition of the APBN Kita report, quoted by the editors earlier this month.

In detail, the latest debt position as of October 2021 which amounted to Rp6,687.28 trillion consists of SBN Rp5,878.69 trillion (domestic Rp4,611.66 trillion and foreign currency Rp1,267.03 trillion).

As well as loans of IDR 808.59 trillion (domestic loans of IDR 12.41 trillion and foreign loans of IDR 796.18 trillion).