Indonesia raises 2020 bond sale target to fund widening deficit

• On top of that, it listed a plan for sales of 449.9 trillion rupiah worth of "pandemic bonds" to cover for additional spending for the COVID-19 response.
• The 2020, estimated net bond issuance, or the target for bond sales excluding short-term treasury bills for cash management, buybacks and debt switching, was raised to 549.6 trillion rupiah.

JAKARTA: Indonesia will increase its 2020, bond issuance target by 160.2 trillion rupiah ($9.68 billion) to cover for the expected widening of 2020, fiscal deficit to 5.07pc of GDP, according to a government document presented to parliament on Monday.

The 2020, estimated net bond issuance, or the target for bond sales excluding short-term treasury bills for cash management, buybacks and debt switching, was raised to 549.6 trillion rupiah, according to the document.

On top of that, it listed a plan for sales of 449.9 trillion rupiah worth of "pandemic bonds" to cover for additional spending for the COVID-19 response.

Finance Minister Sri Mulyani Indrawati has previously explained such bonds are similar to regular sovereign bonds, but the government will have the option to sell directly to the central bank to control yields.