2022 State Budget: Fiscal Policy and Structural Reform
2021 Financing Strategy
Opportunistic, Measured, and Prudent Financing Strategies to support counter cyclical policies
Debt is used as an instrument to support counter cyclical policy; managed in prudent manner,
measurable and opportunistic
Debt Policy
Overall Funding Strategy
1
Manage debt by maintaining the debt over GDP
ratio within the safe limit
1
Non-debt funding source optimization, including SAL
utilization
2
To adopt a flexible debt management which is
responsive in supporting the countercyclical
policy, while prudently manage the cost and risk
2
Targeting Loan Program from Development Partners, for
both bilateral and multilaterals, i.e. World Bank, ADB, KfW,
JICA, EDFC, and AIIB
To achieve an efficient debt cost, by doing market
deepening exercises:
3
investor base widening
improving the infrastructure in the SBN
market
3
debt instrument diversification eg. SDG bond
issuance and municipal bond/sukuk issuance
4
To maintain macro stability by managing debt
portfolio composition optimally.
4
A well targeted SBN (Government Bond) issuance by
optimizing all available sources
Targeting domestic/onshore bond issuance (including
retail bond) for up to IDR 80 tn
Targeting Foreign Currency/Global Bond issuance
amount at 12-15% from total SBN funding (subject to
market conditions)
Private Placement from specific institutions
Support from Bank Indonesia as the funding of the last
resort / back stop
Source: Ministry of Finance
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