Indonesia to top up bond issuance by 15.3 trillion rupiah amid widening fiscal deficit: source

[JAKARTA] Indonesia plans to raise its bond issuance this year by around 15.3 trillion rupiah (S$1.49 billion) to 841 trillion rupiah, anticipating a widening of the 2019 fiscal deficit to 1.9 per cent of gross domestic product (GDP), a government official said on Friday.

The official, who has direct knowledge of the matter, declined to be named because of the sensitivity of the issue.

The government's current outlook for the 2019 deficit is 1.93 per cent of GDP, already wider than its original target of 1.84 per cent, but officials have said they may allow it to widen further to maintain economic growth if needed amid a tax shortfall.

The original plan for bond issuance this year was to raise 825.7 trillion rupiah from domestic and international sales.

REUTERS