JAKARTA. The government will still issue 5 Government Securities (SBN), 2 of which are Saving Bonds Retail (SBR) in Semester II-2019. This can be considered as the government's effort to reduce the Current Account Deficit (CAD).
Director of Government Bonds at the Directorate General of Budget Financing and Risk Management (DJPPR) at the Ministry of Finance Loto Srinaita Ginting said the realization of net SBN issuance had reached Rp 194.96 trillion or 50.12% of the target for 2019. In the second semester of 2019, 5 retail SBNs will be issued; Savings Bonds Retail (SBR) (2 times), Retail Government Bonds (ORI) (1 time), and Sukuk Savings (2 times).
Economist at Samuel Sekuritas Ahmad Mikail said that SBR was still lucrative in the midst of conducive market conditions. He also estimated the possibility of the government issuing foreign currency SBR in December. That step is needed because it could be helpful for the government to reduce the current account deficit (CAD), Mikail said as quoted by Kontan.co.id.
According to Mikail, the estimate is made because the government targets this year's deficit to be at the level of 1.8%, but it can widen because the contribution of tax revenues can be lower than 15% of the Gross Domestic Product (GDP). So, one solution is to increase revenue from SUN. If this scenario occurs, Mikail estimates that the country's deficit can reach 2.5%. Although this level is still acceptable because it is still below 3%, Mikail said. (AM/AR)