Indonesia’s Public Debt Issuance Set to Triple to USD 62 Billion in 2020 amidst Mounting Pressure from COVID-19

A revision in Indonesia’s State Budget puts Indonesia’s deficit spending forecast at IDR 1 quadrillion (USD 62 billion) in 2020, a significant increase from its original target of IDR 351.9 billion.

Finance Minister (FM), Sri Mulyani Indrawati stated that the Government of Indonesia is seeking low-cost funding sources, with Government debt papers considered to be the most appropriate. The FM stated that the Government was planning to offer IDR 549.6 trillion in sovereign debt papers (an increase from the initial IDR 389.3 trillion), and raise IDR 450 million in ‘pandemic securities’.

With the demand for Indonesian debt papers anticipated to decline going for...