Government debt issuance to triple to $62b as Indonesia fights COVID-19
The state budget revision now targets Rp 1.76 quadrillion in revenue, lower than the Rp 2.23 quadrillion previously set out in the 2020 budget. Expenditure, meanwhile, jumps to Rp 2.61 quadrillion from the Rp 2.54 quadrillion targeted previously. The government has widened its state budget deficit beyond the previous 3-percent-of-GDP cap to around 5 percent this year, in line with a new government regulation in lieu of law (Perppu) to lift the legal limit.On Thursday, Indonesia raised $4.3 billion, including from the longest-dated US dollar bond ever issued by an Asian nation with a 50-year tenure, to support government funding. The deal was finalized in the United States on Monday and sold in maturities of 10.5 years and 30.5 years, worth $1.65 billion each, with a 50-year tranche worth $1 billion, Reuters reported.“It is likely that, during this period, the ownership structure of government securities will change to some extent with foreign investors’ lowering their holdings considerably and BI [Bank Indonesia] seen to expand its balance sheet,” according to a research note by Fitch Solutions’ country risk and industry research team on Tuesday.Read also: Indonesia’s COVID-19 stimulus playbook explainedPerppu No. 1/2020, issued last week, allows the central bank to buy government bonds at auction to anticipate a situation in which the market is unable to fulfil the government’s financing target. The regulation revokes a 1999 law on the central bank, which only allowed BI to buy government bonds in the secondary market.Demand for Indonesian debt papers declined sharply in March, according to official documents. At a Feb. 18 auction, the government saw Rp 127 trillion in bids and absorbed Rp 19 trillion, while on March 31, it only saw Rp 34 trillion in bids and absorbed Rp 22 trillion.Foreign investors have dumped Rp 148.76 trillion in Indonesian assets, including Rp 135.08 trillion in government bonds and Rp 9.71 trillion in Indonesian shares, BI data show.Fitch Solutions was of the view that, if the rupiah continued to depreciate rapidly as BI extends its government bond holdings, the Indonesian economy could enter a sovereign debt crisis, as the central bank bled foreign reserves.Read also: BI to dominate ownership of ‘pandemic bonds’ as debt burden grows“For now, this is not our core view, as we expect the recovery off the back of the COVID-19 outbreak to be robust,” Fitch wrote. “Moreover, Finance Minister Sri Mulyani has a good track record of fiscal discipline, and it is likely that, once the worst is over, she will ramp up efforts to bring government spending back in line and broaden the revenue base.”Fitch Solutions now expects the country’s public debt to average 45.3 percent of GDP during the period of 2020-2023 versus 33.1 percent in the last five years.Topics : Indonesia’s new debt is expected to triple this year as the government struggles to fund its fight against the COVID-19 pandemic.According to the newly enacted Presidential Regulation (Perpres) No. 54/2020 on the 2020 state budget revision issued on April 3, the government has increased deficit spending to Rp 1 quadrillion (US$61.5 billion) this year, a jump of 286 percent from the initial target of Rp 351.9 billion.The government plans to offer sovereign debt papers worth Rp 549.6 trillion, an increase from the initial Rp 389.3 trillion, while also planning to raise Rp 450 trillion in “pandemic bonds”, given that demand for government bonds has significantly declined. Finance Minister Sri Mulyani Indrawati said on Monday that the government would look for safe financing sources, including the option to use the endowment fund for education (LPDP) as well as accumulated cash surplus (SAL), but said that “would not be enough”.Read also: Indonesia’s COVID-19 stimulus worth 2.5% of GDP, lower than Singapore, Malaysia“Therefore, we need to issue government debt papers to look for the best financing sources. We will be extra careful in navigating these uncharted waters,” she told House of Representatives Commission XI, which oversees financial affairs, on Monday.President Joko “Jokowi” Widodo has announced additional state spending worth Rp 405.1 trillion to finance Indonesia’s battle against the novel coronavirus pandemic. The new allocation will be used specifically for healthcare, social safety net and business recovery programs.
For all the Latest Sports News News, Tennis News News, Download News Nation Android and iOS Mobile Apps. New Delhi : Indian tennis player Sumit Nagal, who is playing his first Grand Slam, has won the opening set against Roger Federer. The 22-year-old player from Jhajjar, Haryana managed to keep the world no.3 in check in the first set and eventually managed to take lead. He won the first set 6-4.They are facing-off against each other at the Arthur Ashe Stadium in New York. The 22-year-old Indian has become only the fifth Indian player to feature in a Grand Slam singles main draw in this decade. Somdev Devvarman, Yuki Bhambri, Saketh Myneni and Prajnesh Gunneswaran are the only ones who have played at Tennis Majors. Nagal had also become only the sixth Indian player to win a junior Grand Slam title in 2015 when he won Wimbledon boys doubles with Nam Hoang Ly of Vietnam.With Prajnesh also playing in this US Open, India now will have two players in the Grand Slam main draw for the first time since 1998 when legends Leander Paes and Mahesh Bhupathi competed at the Wimbledon. Prajnesh is set to clash with Cincinnati Masters winner and world number five Daniil Medvedev, who conquered Novak Djokovic during his title triumph. Nagal came into the US Open qualifiers confident, backed by terrific results during the clay court season. Consistent results on the Challenger Circuit meant that he broke into the top-200 for the first time in his career and has now earned himself a chance to play a match which every tennis player dreams of. He had started the year outside the 350 bracket and had to overcome a difficult period, encountering injuries but came back strong. India’s Davis Cup captain Bhupathi, who was the first to spot Nagal’s talent and took him under his wings to provide support, said it’s a career defining moment for the 22-year-old from Jhajjar in Haryana. “Nagal has been unlucky with injuries and has worked very hard to get back to this level.Playing Roger at the US Open at night is every qualifier’s dream and nightmare and I think this experience will both be a confidence booster and a career defining moment for him,” Bhupathi told PTI, reacting to Nagal’s impending Grand Slam debut. So what Nagal needs to do to not get overwhelmed when he finds Federer across the court? “He needs to enjoy the moment and go for his shots,” suggested Bhupathi.With PTI Inputs 
General Manager, Production at SuperSport, Niyi Oyeleke, said each of the players nominated deserved the award adding that, “however, being a competition in which fans choose their preferred goal, one person is bound to win and Ali hugely deserved of this awardâ€.Ali becomes the 7th VAT Wonder Goal Award winner following Ayo Saka of Rivers United, Ubong Friday of Akwa United and Salefu Ochowechi of Remo Stars. The other are Seka Pasachal of FC IfeanyiUbah, Ahmed Usman of Wikki Tourists and Shedrack Asiegbu of Abia Warriors.Winners receive a cash reward of N150, 000 half of which is donated to a charity of his choice located within the state where the club is based. Ali is expected to be presented his award at a ceremony to hold before the start of their Match-day 29 fixture against Rangers International at the Sani Abacha Stadium in Kano on Sunday.The VAT Wonder Goal is a Social Investment initiative of the League Management Company (LMC) to promote clubs and community engagement and supported by the Federal Inland Revenue Services (FIRS) to promote tax education amongst the football community.Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegram Veteran Kano Pillars midfielder, Rabiu Ali, has clinched the Match-day 26 VAT Wonder Goal, beaten off competition from Tchato Giscard of Mountain of Fire and Miracles Ministries (MFM) FC. Abia Warriors’ Yakub Hammed finished a distant third in the online polling conducted on the Nigeria Professional Football League (NPFL) website and twitter handle.Of the total of 196 voters on the NPFL twitter account, @LMCNPFL, 101 endorsed the goal Ali scored away from home in Ilorin against Abubakar Bukola Saraki (ABS) FC in a 1-1 draw while another 53 voted Tchato Giscard’s volley against Sunshine Stars at the Agege Stadium in MFM 2-1 defeat of the Akure Gunners. Abia Warriors Yakub secured the remaining 42 votes.58 fans who voted on the NPFL website, www.npfl.ng preferred Tchato, 49 voted for Ali and while Yakub got only three votes. The Kano Pillars ace thus secured a total of 150 votes while Tchato picked 111 and Yakub 45.