VIVAnews - The 2009 State Budget Plan (APBN) adjustment results in a change in the government budgeting number. Because of rising deficit of 2.6 percent, foreign debts have to be added by Rp 7.4 trillion (US$622.7 million).
The additional debt, as stated by the Head of the Fiscal Policy Division of the Financial Department in Jakarta on Wednesday, Feb. 19, Anggito Abimanyu, is an implication of the APBN adjustment.
In the adjustment, the latest macro economics assumption is changed and the government uses a projected economic growth of 4.5 percent, thus APBN deficit is estimated to be around 2.6 percent of Gross Domestic Product (GDP) or is worth about Rp 137 trillion (US$11.53 billion).
This deficit budget needs to be covered by 2008 budget surplus and by standby loans which also adds new debt into the APBN. Nonetheless, the government does not indicate the source for paying this Rp 7.4 trillion debt.
According to Abimanyu, the government will try to find the cheapest alternative funding source. "We don't have the details. Basically, we'll find the cheapest and most readily available. The details depend on the market conditions," he said.
If it is possible, Anggito said that the government can issue obligations. But if the cost is more expensive and it is possible to take money from standby loans, the government will choose the standby loans. "We're trying to find a safe way, if it's possible we will draw from a cheaper market," he added.
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Translated by: Ariyantri E. Tarman
