Government Considers Selling Bonds Valas Denomination Euro

Euro currency (Photo: unsplash)

The Directorate General of Balance and Risk (DJPPR) of the Ministry of Finance (Kemenkeu) said it was still considering issuing state securities in the form of foreign exchange in the denomination, namely the euro bond this year.

Director of State Securities of the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance Deni Ridwan said the current condition of the government's cash is still very good so that the government has flexibility for the issuance of state securities (SBN), both in terms of the time period and the currency.

According to Deni, before issuing the euro bond, his party will see various considerations such as economic conditions, both domestic and global. In addition, it will determine the right time, target and also in terms of the composition of the currency that will be set.

"So if we really think that the issuance with the euro currency is good, why not," he said after a press conference with the media crew in Jakarta, Monday, June 10.

Deni said that previously the government had sold foreign exchange Government Securities (SBN) in Japanese yen denominations and in US dollars.

According to Deni, investors in Europe actually expect the Indonesian government to be able to issue global SBN with a euro currency.

"So they still expect the government to be able to issue euros because the demand is there," he said.

Meanwhile, Indonesia issued the last euro bond in 2021 in the form of Government Securities (SUN) Sustainable Debelopment Goals (SDG) in a foreign euro currency with the SEC-Registered Shelf Take-Down format. The SDG bond is RIEUR0334 with a tenor of 12 years so it is due on March 23, 2034.

"When we meet investors in Europe they really hope that the Indonesian government can issue global SBN with a euro currency because the last time they issue a euro bond is in 2021," he explained.

For information, in the 2024 State Revenue and Expenditure Budget (APBN), the government plans to issue a total SBN of Rp666.4 trillion, to finance the targeted budget deficit of Rp522.8 trillion, or equivalent to 2.29 percent of gross domestic product (GDP).