Pay off debt crisis, the government is relying on a surplus of Indonesian banks

 KOMPAS.com - The government is relying on a surplus of Bank Indonesia to pay off debt that comes due to the monetary crisis in 1998-2000, which is valued at Rp 129 trillion. Peak load of debt maturities coming from bond issuance Special Rate, Bank Indonesia, or SRBI 001, it will happen in the year 2033. 
Minister of Finance and the Executive Office of Economic Coordinating Minister Sri Mulyani Indrawati has revealed that in Jakarta, Sunday (14 / 6). 
SRB-01/MK/2003 are government bonds issued on August 7, 2003, as a substitute for Government Securities (SU)-001utan and SU-003. Debentures were issued related to the completion of BI liquidity support (BLBI). Nominal value of Rp 144.54 trillion, the issuance of SRBI. 
SRBI mature in 2033 with a coupon rate of 0.1 per cent a year calculated from the remaining outstanding principal, which is paid periodically twice a year. 
SRBI repayment can be sourced from a surplus of BI that is part of government, and will be conducted if the ratio of capital to the monetary obligations of BI on top of 10 percent. 
In 2006, the ratio of capital to the monetary liabilities of more than 10 percent of BI. BI to use these advantages to reduce the outstanding value of Rp 1.52 trillion SRBI. 
According to Sri Mulyani, SRBI-001 rate is relatively low so as not to burden the government that took power in 2033. Especially when taking into account the time value of money (net present value of money), then the interest expense was very light because interest rates were not influenced by the increase in inflation. 
"If the BI get the excess proceeds from the management of finances, it will automatically reduce the SRBI 001. From the years 2009 to 2033 there was still time 24 years, that means, SRBI-001 was able to in-reprofiling (ie, among others, by extending the maturity date), "said Minister of Finance. 
Do not reducible 
According to economic analysts Indonesian Team Up, Revrisond Baswir, the debt problem should not be reduced to the problem of finance and management. 
Debt, said Revrisond, is a social issue politics. "The statement repeated that the ratio of debt to GDP (gross domestic product) declined to show the economic team lazy to find a comprehensive solution to the problem of debt," he said. 
Until May 29, 2009, total government debt, including bonds BLBI domestically, and abroad reached USD 1700 trillion. The period of maturity which is high will occur in 2010, 2012, and 2014, ie each value of Rp 110 trillion, Rp 127 trillion, and Rp 130 trillion. 
source: compass