Indonesia will issue an additional 57.8 trillion rupiah ($4.23 billion) of bonds to cover a bigger fiscal deficit, the country’s finance minister told a parliamentary budget committee on Thursday.
Finance Minister Bambang Brodjonegoro proposed a revision to the state budget – a fiscal deficit of 2.48 percent of gross domestic product (GDP) – bigger than the 2.15 percent originally planned.
The ministry will cover the remaining 19 trillion rupiah of the ballooning fiscal gap from the government’s extra cash.
At the same meeting, Bank Indonesia’s Deputy Governor Perry Warjiyo said the average exchange rate for the rupiah this year was expected to be between 13,500-13,800 per dollar. That compares with Thursday rate of 13,655 per dollar at 0810 GMT.