REPUBLIKA.CO.ID, JAKARTA -- Minister of Finance Bambang Brodjonegoro stated that Indonesia budget deficit in 2015 would decline to 2 percent of GDP, lower than the target of previous year. The declining deficit will give an impact to government debt.

"It will affect government bond as well as government debt," Minister Brodjonegoro said recently.

Government will soon evaluate its debt, especially those related to bond issuance and multilateral loan. Evaluation is carried out due to US economic recovery. "The Fed may hike its Fed rate up to 100 bps by the end of 2015. We have to decline budget deficit," he said.

Brodjonegoro said that government would shift the portion of loan. Domestic loan will be higher than foreign loan to anticipate a sudden reversal. Government will issue an instrument to boost the number of domestic investor in financial market.

According to the data from the Ministry of Finance, budget deficit from January 1 - December 31 of 2014 reached 227.4 trillion IDR or 2.26 percent of GDP. The number is slightly below the target on revised budget.

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