SOVEREIGN LOANS CONTRIBUTION TO INDONESIA DEVELOPMENT IN 2030 BY SCENARIO PLANNING

• Main Author: Zaenudin, Akhmad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/48090
• Institution: Institut Teknologi Bandung

National goal of the Indonesian government in the 1945 Constitution is to realize the greatest prosperity for the people of Indonesia through socially equitable development. The Government uses the State Revenue and Expenditure Budget (APBN) to fund all State activities. However, not all State activities can be directly funded by the APBN due to budget constraints. Therefore, to overcome the budget deficit, financing is needed. Sovereign loans have been as financing instruments for development in Indonesia from the independence era to the present. However, with the issuance of Law Number 24 Year 2002 regarding Debt Securities as a legal umbrella for the issuance of state bonds, the main financing instrument has shifted from sovereign loans to Government Securities (SBN) since 2005. The Directorate of loans and grants of the Ministry of Finance as sovereign loan manager needs to understand the shifting financing instrument to line ministries of industry to build a portfolio with competitive affordable costs of borrowing. The purpose of this study is to find out how the challenges and roles of Directorate of Loans and Grants in managing foreign loans as financing instruments to support Indonesia's development through scenario planning.