Sri Mulyani's Comments About America Threatened With Debt Failure

Minister of Finance Sri Mulyani (left) with US Treasury Secretary Janet Yellen (Photo: Doc. Ministry of Finance)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani spoke about the potential for default on the debt of the United States (US), which is now in the spotlight of the world's economists. He conveyed this when answering reporters' questions at a press conference on the Financial System Stability Committee (KSSK) in Jakarta earlier this week.

America is now faced with a deficit or gap of debt that has not experienced a small gap between congress and the government. This then gives uncertainty to the fiscal policy," he said, quoted on Tuesday, May 9.

The Minister of Finance himself assessed that the situation in the superpower was more about the ongoing political dynamics. In fact, Sri Mulyani believes that the US is able to fulfill this obligation.

"That's the real political dynamics. America can pay off its debt if its debt tilting (loan ceiling) is opened. But to open a debt trafficking, it needs a political process," he said.

He also ensured that the US economic condition did not provide negative excesses for productive activities in the country.

"Until now, if we look at there is no influence on the Indonesian economy, especially markets that have not given a signal," said the Minister of Finance.

Based on information compiled by the editors, US Treasury Secretary Janet Yellen revealed that her country has the potential to default on debt of 31.4 trillion US dollars. He conveyed this information to the chairman of parliament earlier this month.

According to Yellen, if the congress does not approve the proposed strategic fiscal policy offered by the government, there is a potential default that will actually occur on June 1.