KONTAN.CO.ID - JAKARTA. Until the end of February, the realization of the 2019 state budget financing reached Rp. 197.56 trillion. This figure is equivalent to 66.74% of the target of IDR 296 trillion at the end of the year.

Debt financing dominates the financing target in the 2019 State Budget. The 2019 state budget sets the goal for debt financing of Rp 198.37 trillion (55.2%).

The Ministry of Finance (Ministry of Finance) explained that the high realization of debt financing was in line with the issuance of Government Bonds (SBN) which had reached Rp. 197.1 trillion. That amount is equivalent to 50.67% of the target of Rp. 388.96 trillion.

Tuesday (3/19), Luky Alfirman, Director General of Risk Financing and Management (DJPPR) of the Ministry of Finance, explained that the massive issuance of SBN at the beginning of the year was to pay off SBNs due this year.

As of February, the total central government debt touched IDR 4,666.26 trillion. The ratio of government debt to GDP increased to 30.33%.

Luky continued, the total retail SBN maturing in March reached Rp. 31.5 trillion. The acquisition of retail SBN issuance funds in January - March (SBR005, ST003, and SR011) is projected not to be able to cover the amount due. "From SBR005 the issuance of IDR 4 trillion, ST003 IDR 3 trillion, and SR011 so far are only IDR 15 billion," Luky said.

Luky also said that the portion of SBN issuance at the beginning of this year was still relatively small compared to the issuance of gross SBN. This year, the total SBN issuance target reaches Rp 825.7 trillion.

Since its inception, DJPPR has targeted SBN issuance in the first semester of 2019 to range from 50% -60% of the gross SBN target. This figure shows that the total SBN issuance at the end of February only reached 24.02% of the destination.

Also, another purpose of SBN issuance is to maintain foreign exchange reserves that have fallen at the beginning of the year. The government has issued Global Green Sukuk worth USD 2 billion and has experienced requests of more than 3.8 times.

"We are implementing this strategy considering 2019 is a year that is 'unpredictable' the government must be aware of market uncertainty. Loading ahead can anticipate high uncertainty at the end of the year," explained the Ministry of Finance.

Editor: Hasbi Maulana