Finance minister: state budget has surplus of Rp150 trillion

Thursday, 8 July 2010

ANTARA News Agency

Finance Minister Agus Martowardojo said Thursday the 2010 state budget currently has a surplus of around Rp.150 trillion (USD 16.5 billion).

"In general, our financial conditions are good as our state budget currently has a surplus of around Rp150 trillion," he said after addressing a seminar on financial reform.

Because of the surplus, the government saw no urgency in the issuance of foreign currency-denominated bonds, including Samurai bonds, he said.

"No. There is no urgency yet (in issuing Samurai Bonds). Admittedly, we have budget funds to issue state debentures. We can choose whether to issue local or global bonds or whether to issue sukuk (state sharia bonds) or Samurai bonds. We are still studying the options," he said.

Asked about the availability of funds to increase subsidies, he said they had been allocated under the revised 2010 state budget.

When the 2010 state budget was revised the assumed oil price had been raised to US$80 from US$65 per barrel, he said.

"So when current oil prices range between US$70 and US$75 per barrel we have a surplus on what we have budgeted," he said.

The minister said the budget surplus of Rp150 trillion was based on the position of the government budget treasury as per July 7, 2010.

"Although the state budget is expected to suffer a deficit of 2.1 percent in 2010 it still has a surplus now," he said.