Moh Khory Alfarizi, Jakarta – The Indonesian Finance Ministry's Directorate General of Financing and Risk Management's Director of Government Bonds, Deni Ridwan, on Wednesday, said ownership of state bonds is dominated by domestic investors.
"80 percent of our state bonds are backed by domestic investors with constantly growing interests annually," said Ridwan in central Jakarta on June 14.
Prior to the Covid-19 pandemic, according to Deni, 39 percent of state bonds were owned by foreign investors but currently, it only controls 20 percent. The government annually allocates hundreds of trillions of rupiah to pay bond interests. He claimed the Ministry of Finance has prepared Rp400 trillion for interest payments.
"This is used directly by the people of Indonesia," said Demi.
Of this value, Deni admitted that the largest, roughly 20 percent, is enjoyed by banks. However, on the other hand, state bonds also helped banks during the Covid-19 pandemic when the economy stood to a halt due to restrictions on people's mobility.
The situation hindered banks from extending credit and those who have credit were unable to pay. The Finance Ministry official then encouraged the general public to own state bonds.