Since 1960 GoI budget deficit financing has mainly came from debt. Initially government debt consisted of foreign debt from bilateral, multilateral, and commercial loans. Upon the issuance of Government Regulation No. 24/2002 on Government Bonds, debt financing can now be acquired from government bond issuance. In 2002, government bond financing was still at a negative balance of 1.9 trillion Rupiah (negative because government bond paid was greater than government bond issuance). Thereafter, the GoI bond balance became positive and has since shown significant growth. Government bond financing is now considered as a significant budget resource.
Government Bond ownership has been variable. For the first issuance in December 2002 banking institutions dominated with 88% ownership whereas in 2008, this decreased to 49%. Non-banking bond ownership, such as from insurance and pension funds, mutual funds, non-residents, and security companies are growing rapidly every year.
Investor characteristics have an impact on the type of Government Bonds that are issued including the currency denomination. Thus it is advisable to methodically assess investor preferences including a comparison of demand between institutional investors over time. One tool to do this is to conduct a survey of market players. Survey results will identify government securities portfolio preferences in terms of type (eg. Syariah, Treasury Bills) and value. Hence, the survey outcome will be essential for guiding policy and ultimately to assist in the GoI achieve its financing targets.
Presently DGDM conducts a yearly analysis and survey, based on an internally developed methodology. This information is then used to set policy for the following year.
Given the above context, Expressions of Interest are sought from consultants or consulting firms, to develop a more robust survey methodology on Government securities preferences and potential demand.
- Development of mechanism and methodology to conduct survey of Government Securities Preferences and Potential Demand Measures, specifically in (i) measuring potential demand and (ii) identifying portfolio structure preference of Government Securities;
- A key group of DGDM Staff trained in the implementation of survey using the new mechanism and methodology.
Scope of Assignment
The consultant/s will be expected to:
- Analyze the current survey conducted by the Government;
- Conduct in-depth stakeholder interviews on the expected information to be presented and forecast by the survey;
- Developing a survey methodology for Government Securities Preferences and Potential Demand Measures;
- Design and develop required questionnaires and systems to support the developed survey methodology;
- Conduct a small scale pilot survey based on the methodology; and
- Conduct training on the use of survey module for relevant staffs
Expressions of Interest are sought from experienced consultants/firms who fulfill the selection criteria outlined below.
- Experience with the development and implementation of surveys, preferably related to financial markets
- Ability to consult in Bahasa Indonesia
- Relevant consulting experience in a Indonesian Government Agency will be highly regarded
To be considered please send a CV of no more than 4 pages or a brief corporate capability statement (including information on the firm’s core businesses, relevant recent activities and the CVs of key personnel) to email@example.com by the 4th May 2009. Only short listed applicants will be contacted.
Note: CVs of suitable applicants will be added to the TAMF consultant Database