UPDATE 1-Indonesia aims for 2 trln rph in March 10 debt sale

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JAKARTA, March 5 (Reuters) - Indonesia's finance ministry said on Thursday it aims to raise 2 trillion rupiah ($167 million) from its debt auctions on March 10, to help finance a ballooning budget deficit. The ministry said in a statement it plans to sell treasury bills maturing in 2010 and fixed-rate bonds IDFR0036= maturing in 2019.

With elections in April and July, the government has launched a 73.3 trillion rupiah ($6.11 billion) fiscal stimulus plan to create jobs and boost growth amid a global slowdown.

That spending has pushed up the forecast budget deficit to 139.5 trillion rupiah for 2009, equivalent to 2.5 percent of GDP.

Indonesia's target for gross debt issuance this year is 100 trillion rupiah to help finance the deficit.

Last month, it raised $3 billion from a global bond issue and 5.556 trillion rupiah ($463 million) from a retail sukuk issue.

It also raised a total of 6.15 trillion rupiah at its last government debt auction, on Feb. 24, or more than double its target for that sale.

With some $5-$6 billion in standby loans from various agencies also in place, Indonesia is seen as being well ahead in its funding requirements, although some economists warn that there is a risk Jakarta may have to increase its fiscal stimulus if global conditions turn out much worse than expected.

Bank Indonesia, the central bank, cut its key interest rate by 50 basis points to 7.75 percent on Wednesday to spur consumer demand and bank lending, at the same time lowering its 2009 growth forecast to 4 percent from 4-5 percent previously. ($1=11,990 Rupiah) (Reporting by Adriana Nina Kusuma; Writing by Sonya Angraini; Editing by Sara Webb)