Indonesia’s finance ministry plans to issue what it calls “mismatch treasury bills” with “unique tenures”, anticipating any gap in revenues and ensuring funds were available for required spending, an official at the financing and risk management office told reporters on Friday (29/09).
Loto Srinaita Ginting, director of sovereign bond issuance at the ministry, said the T-bills would be issued “in case revenue inflows were coming later than needed to cover required spending.”
She said the issues could cover gaps of a matter of weeks to a month.
Indonesia currently regularly sells 3-month, 6-month, 9-month and 12-month conventional and Islamic T-bills at auctions every week.
Loto said the move should not raise suspicions that the government faced any current cash problem.
As of the end of August, the government had raised Rp 973.9 trillion ($72.2 billion) in state revenue or 56 percent of target for 2017. During the same period, it had spent Rp 1,198 trillion, also 56 percent of target.
The Rp 224.4 trillion gap in the budget had been funded by loans and bonds worth Rp 330 trillion, meaning the government still had at least Rp 105.6 trillion of cash by August.
To finance an expected budget deficit of 2.67 percent of Indonesia’s GDP in 2017, the finance ministry plans to issue a total of Rp 712 trillion rupiah worth of bonds this year.