The Government of Indonesia has conducted an SBSN auction on September 29, 2020. The total incoming bid amounted to Rp 19.8 trillion, slightly down from the previous incoming bids of Rp 20.8 trillion. The total awarded was Rp 6.4 trillion, also down from the previous auction of Rp 9.5 trillion. In addition, the Government will conduct an additional SBSN auction (Green Shoe Option) on Wednesday, September 30, 2020. The yield from Government bonds on September 29 reached 6.95%, an increase of 3 bps from the previous auction date (September 15). The World Bank predicts Indonesia’s economic growth throughout 2020 could be contracted to minus 1.6% to minus 2% (year on year). This projection is worse from the consensus issued in June 2020, which is 0%, or stagnant. (Kontan) To deal with the Covid-19 pandemic and encourage economic growth to the 5% level, the government of Indonesia and the Indonesian Parliament approved the 2021 State Budget expenditure of Rp 2,750 trillion. With a revenue target of Rp 1,742 trillion, the fiscal deficit will reach Rp 1,006 trillion or 5.7% of GDP. To cover the deficit and finance debt, the Government plans to issue debt securities of Rp 1,177 trillion. (Investor Daily) Source: Danareksa Sekuritas Debt Research Photo by LOGAN WEAVER on Unsplash