The issuance of State Bonds (SBN) in the first quarter of 2017 reached Rp 265.77 trillion, or approximately 38.7 percent of the target set in the 2017 State Budget (APBN). Of the total issuance during the first three months of the year, Rp 96.45 trillion, or 48 percent of the target, was in the form of Syariah State Bonds. Conventional bonds reached Rp 169.33 trillion, or 34.61 percent of the Rp 489.31 trillion target.
The government appears to have intensified SBN issuance at the beginning of the year to finance development and employee salaries. This front-loading strategy was implemented to balance tax revenue with government spending. Furthermore, the government took advantage of the relatively conducive conditions in the bond market at the beginning of the year. This is because the market tends to be more volatile in the second half of the year.
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