* Prepare Three Alternative Issuance of Special Pandemic Covid-19 Debt
JAKARTA, The Indonesia Post – Anticipating the domino effect due to the Corona virus pandemic (Covid-19), the Government of Indonesia has prepared a special pandemic bond. With the issuance of special debt securities, it is believed that Indonesia’s economy will be stable.
The special debt securities are prepared as a form of anticipation to protect the possibility of domino effects that could threaten the Indonesian economy and financial system. “We have prepared a ‘Pandemic bond’ which is one of the instruments located ‘below the line’. This is not due to the state budget deficit due to revenues reduced by greater state spending, but ‘Below the line’ means resources reserved by the state in order to protect the possibility of domino effects that threaten the economy and financial system in a country, including Indonesia, “said the Minister Finance, Sri Mulyani.
Associated with the “Pandemic Bond”, continued Sri Mulyani, still in the stage of finalization by the Ministry of Finance of the Republic of Indonesia. “It’s just that, in several discussions with financial institutions, we have prepared several alternatives. For example, consists of state capital participation.
However, based on discussions with several financial institutions, there are a number of alternatives. First, in the form of state capital participation. So far, the government has carried out ‘below the line’, we have included it in the balance sheet of financial institutions or State-Owned Enterprises (BUMN). How use cash, can also be non-cash, “said Sri Mulyani. The second step, carried out in the form of placement of government investment (government funds). This one model is the placement of government investment (government funds), but is directly held by an institution appointed by the government, “he said.
The third form is in the form of loans. For this alternative, the affected institution can make a claim to the government. “We will issue this debt this year, we are sure that economic conditions will stabilize. But, we also hope that there will be no Covid pandemic volume 2 or volume 3. Hopefully Covid will end soon, and our economy will be even better, “Sri said hopefully. (princes / bbs)
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