28th October 2022 – The Ministry of Finance (Kemenkeu) noted that the government’s debt position reached IDR 7,420,47 trillion, equivalent to 39,30 percent of gross domestic product (GDP) at the end of September 2022. The value of the debt increased by IDR 183,86 trillion from the previous IDR 7,236,61 trillion in August 2022.
Despite the rise, the Ministry of Finance said that the increase is still within safe limits due to the government debt ratio was still far below the maximum limit stipulated in the law, which is up to 60 percent of GDP.
The Ministry further explained that the increase in the amount of government debt cannot be separated from the need for financing which is increasing rapidly as the need for Indonesia’s State Revenue and Expenditure Budget (APBN) spending during the pandemic in 2020. The widening of the deficit is a policy taken by almost all countries to maintain the economy.
The government debt in September 2022 was dominated by state securities (SBN) amounting to IDR 6,607,48 trillion or around 89,04 percent of the total debt. Meanwhile, loans were recorded at IDR 812,99 trillion or 10,96 percent of the total debt.
Based on currency, the government debt is dominated by the domestic currency or rupiah, which is IDR 70,86 percent. The debt has become the government’s shield in the face of high volatility in foreign currencies and its impact on the payment of foreign debt obligations.
As for the amount of Government Securities (SBN) debt, consisting of domestic or rupiah denominations of IDR 5,242,33 trillion or 70,85 percent of the total SB. This includes the state debt securities (SUN) worth IDR 4,254,15 trillion and state sharia securities (SBSN) of IDR 998,17 trillion.
Meanwhile, debt from loans includes domestic loans of IDR 16,02 trillion and foreign loans of IDR 796,87 trillion. In detail, the foreign loans consist of bilateral loans of IDR 260,05 trillion, multilateral of IDR 492,30 trillion, and commercial banks of IDR 44,36 trillion.
