JAKARTA - Minister of Finance Sri Mulyani Indrawati believes Indonesia still has access to the market in absorbing state securities (SBN) for financing COVID-19 despite panic by market players in April and June 2020.
"Even in such a situation Indonesia has a good reputation, we still have access to the market," he said in a virtual CNBC Debate on Global Economy in Jakarta, reported by Antara , Friday. October 16th.
According to Sri, despite entering the financial market during turbulence due to the COVID-19 pandemic, investors are still absorbing government SBN because it offers attractive interest rates.
The 10-year SBN yield is 6.9 percent as of October 1, 2020.
He continued, currently the government is also working with domestic financial market players and also Bank Indonesia (BI). The central bank's involvement in buying government bonds in the primary market is because it requires enormous financing and is in an unprecedented or unprecedented situation .
"BI can also buy government SBN on the primary market without creating the impression that we will threaten BI's independence. This is authentic, we need a lot of communication, at the same time designing the right policies, "he said.
Even so, Sri ensured that the policy was carried out carefully and was not haphazard and transparent.
The COVID-19 pandemic crisis caused the government to widen the 2020 state budget fiscal deficit, which previously reached 1.7 percent, now to 6.34 percent of Gross Domestic Product (GDP).
For handling COVID-19 and national economic recovery, the government has allocated Rp.695.2 trillion of which for health, social protection, MSME support and business incentives.
"We are very prudent and careful in using choices and policies and instruments. This is very important when we have to stabilize the market, when we have to have sustainable debt and also so that we are able to save people and their livelihoods, "he added.
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