Facts About Government Debt Payment, Confirm The Amount Of Rp1,000 Trillion Per Year?

Illustration. (Photo: Doc. Antara)

The 10th and 12th Vice Presidents of the Republic of Indonesia Jusuf Kalla (JK) said that debt payments during the administration of President Joko Widodo (Jokowi) reached Rp1,000 trillion per year. According to JK, this number is the largest since Indonesia's independence. So, what is the fact of the payment of government debt?

It is known, in the commemoration of the 21st Anniversary of the Prosperous Justice Party (PKS) which was held at Istora Senayan, Jakarta, Saturday, May 20, 2023, Jusuf Kalla responded to the statement by the Chairman of the Democratic Party Agus Harimurti Yudhoyono (AHY) who said the government's debt had continued to swell in recent years.

"The economy has problems domestically and abroad, earlier I talked about debt, Mas AHY said earlier that he had a big debt, yes, that's right. A year of paying interest and debt of more than Rp. 1,000 trillion. The largest in Indonesia's history since independence," said JK, quoted from the PKSTV YouTube channel, Wednesday, May 24, 2023.

According to temporary data on the realization of the budget in our 2022 State Budget, government debt payments are divided into two, namely principal installment payments and debt interest payments.

Last year, the government spent nearly 500 trillion to pay off government debt. In detail, debt interest payments of IDR 386.34 trillion and principal debt installments of IDR 81.2 trillion. The total payment of government debt in 2022 is IDR 467.54 trillion.

Furthermore, the principal debt payment consists of payment of principal foreign loan installments of IDR 79.28 trillion and domestic loans of IDR 1.92 trillion.

The realization of interest payments and principal installments of government debt in 2022 continues to increase, when compared to 2020 and 2021, which amounted to Rp407.37 trillion and Rp427.11 trillion, respectively.

In the Central Government Financial Report (LKPP) it is stated that the government debt interest payment in 2020 will reach IDR 314.98 trillion. This figure jumped to IDR 343.49 trillion in 2021.

On the other hand, the payment of principal government debt installments has decreased, from 92.39 trillion in 2020 to 83.62 trillion in 2021.

Meanwhile, based on Bank Indonesia's Foreign Debt data, the government in 2022 will issue IDR 232 trillion to pay interest and principal debt on foreign loans.

This figure decreased compared to debt payments in 2021, which amounted to 241 trillion.

Based on a report from the Ministry of Finance, the position of Indonesia's government debt reached IDR 7,879.07 trillion as of March 31, 2023, with a debt to Gross Domestic Product (GDP) ratio of 39.17 percent.

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