Sri Mulyani Saves RI from Debt of IDR 310 T
The government will not withdraw new debt of Rp 310 trillion in 2021. This is due to high state revenues and 'fresh funds' assistance from Bank Indonesia (BI) as well as the use of SAL.
"Small deficit means small financing of Rp 868.8 trillion," said Finance Minister Sri Mulyani Indrawati at a press conference yesterday. In the 2021 State Budget, the target for budget financing is Rp 1,006,4 trillion and the realization is 86.3% of the target, which is Rp 868, 6 trillion. Specifically for net debt financing, the realization was Rp. 867.4 trillion, or Rp. 310 trillion, lower than the target. This means that the government has succeeded in saving the country from the burden of debt that must be borne in the future.
"That's why since November we have not conducted SBN auctions anymore. Because at that time we saw a hard increase in revenue even though our spending remained, we didn't stop spending so that the deficit would be small," he explained.
State revenue in 2021 reached Rp 2,003,1 trillion or 114.9% of the target, growing 21.6%. Includes tax revenues of Rp. 1,277.5 trillion (103.9%) grew by 19.2%, customs and excise of Rp. 269 trillion (125.1%), grew by 26.3%, and PNBP of Rp. 452 trillion (153.8%). , grew 31.5%.
Meanwhile, state spending grew 7.4% to Rp 2,786.8 trillion (101.3%). The details are central government spending of Rp. 2,001 trillion (102.4%) and transfers to regions and village funds of Rp. 785.7 trillion (98.8%).
The Ministry of Finance recorded a primary balance of Rp 440.2 trillion (69.5%) deficit or lower than the previous year's 30.5%. The budget deficit was 4.65% of GDP equivalent to IDR 783.7 trillion, down 17.3% from the previous year. Meanwhile, SILPA is Rp. 84.9 trillion.
There is an Initial SUN Auction in 2022 Today, the target is IDR 25 T, the Government through the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance will conduct another auction of Government Securities (SUN) in rupiah currency to fulfill part of the financing target in the 2022 State Budget.
The inaugural auction in 2022 which will be held on Tuesday (4/1/2022) today is the auction of Government Securities (SUN), with an indicative target of IDR 25 trillion. .08/2019 concerning Auction of Government Securities in the Domestic Primary Market (PMK No. 168/PMK.08/2019).
The auction is also following Minister of Finance Regulation Number 38/PMK.02/2020 concerning the Implementation of State Financial Policies for Handling the 2019 Corona Virus Disease (Covid-19) Pandemic and/or Facing Threats That Endanger the National Economy and/or Financial System Stability (PMK No. 38/PMK.02/2020).
The main terms and conditions for SUN to be auctioned are as follows:
1. Auction Date: Tuesday, January 4, 2022, opens at 09.00 WIB and closes at 11.00 WIB
2. Settlement Date: Thursday, January 6, 2022
3. Indicative Target: IDR 25,000,000,000,000.00 (twenty five trillion Rupiah)
4. Maximum Target: IDR 37,500,000,000,000.00 (thirty seven trillion five hundred billion Rupiah)
SUN Auction Plan 4 January 2022SUN Auction Plan 4 January 2022
The DJPPR stated that the sale of the SUN will be carried out using an auction system organized by Bank Indonesia (BI).
"The auction is open (open auction), using multiple price methods. The auction winner who submits competitive bids will pay according to the proposed yield," wrote DJPPR, in a statement, quoted Monday (3/1). /2022).
Auction winners who submit non-competitive bids will pay according to the weighted average yield of the winning competitive bids.
The government has the right to sell the seven series of SUN for more or less than the specified indicative amount. The SUN to be auctioned has a nominal value per unit of IDR 1 million.
"In principle, all parties, both individual and institutional investors, can submit bids in the auction. However, in practice, the submission of purchase offers must go through the Bidder as regulated in PMK No. 168/PMK.08/2019 and PMK No. 38/PMK.02/2020," wrote the DJPPR.
In the last auction in 2021, namely the auction of State Sharia Securities (SBSN) which was held on November 2, 2021, the nominal value of SBSN won by the government was IDR 4 trillion, or following the indicative target set by the previous government. In the auction process, incoming bids reached Rp 48.7 trillion.
As for the last SUN auction in 2021 which was held on October 26, 2021, the Government won the auction in the amount of Rp. 8 trillion, also following the indicative target set by the previous government. Meanwhile, incoming bids reached Rp 69.5 trillion
Until the end of November 2021, state revenues have been reached Rp. 1,699.4 trillion or 97.5% of the target of Rp. 1,743.6 trillion. This revenue grew 19.4% year-on-year (YoY).
This positive note made the government succeed in reducing the debt withdrawal which was quite significant up to Rp 263.5 trillion. Debt, in this case, comes from the issuance of Government Securities (SBN).
"The state budget is starting to recover with state revenues experiencing an extraordinary strengthening so that this year we reduce our debt issuance to Rp. 263 trillion," said Finance Minister Sri Mulyani at the KiTa State Budget press conference last Tuesday (12/21/2021