Did You Know, Every 1 Dollar Debt Withdrawal Results In Benefits Of 1.34 GDP Dollars

Illustration (Photo: Doc. Antara)

JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara revealed that Indonesia experienced a larger change in gross domestic product (GDP) compared to the amount of debt in the 2018-2022 period.

According to him, at that term the amount of GDP was US$276.1 billion. Meanwhile, the government's debt is US$206.5 billion.

"So we can say that every 1 dollar additional debt can generate an additional GDP of more than 1 dollar or 1.34 dollars," he said during a working meeting with Commission XI of the DPR regarding the 2024 RAPBN, Monday, June 5.

Suahasil explained that Indonesia's position was only defeated by Vietnam with a debt ratio of 1 dollar which resulted in 5.61 GDP dollars. This figure was formed because the GDP position in the same period was 102 billion US dollars compared to the debt of 18.2 billion US dollars.

Just so you know, the conditions that occurred in Vietnam could not be separated from the 'dual collapse' due to the relocation of factories from China in the early days of the COVID-19 pandemic.

Furthermore, the condition of Indonesia and Vietnam is much better than other countries such as India, which only gets an additional GDP of 0.73 dollars from every 1 dollar of debt withdrawn.

Then Malaysia and China with 0.70 dollars, the Philippines and the United States 0.55 dollars, and Thailand with an additional 0.34 dollars GDP every 1 dollar of debt owned.

Among the G20 and ASEAN countries, the increase in our GDP and Vietnam is greater than debt. Meanwhile, other majoritas are actually their debt higher than GDP," said Suahasil.

For information, the amount of government debt until April 2023 is IDR 7,849.8 trillion. The book is lower by around IDR 29.1 trillion from March which amounted to IDR 7,879 trillion.

The debt ratio per April to GDP is 38.15 percent. This means that it is at a safe limit because it is far below a maximum of 60 percent of GDP in accordance with Law Number 17 of 2003 concerning State Finance.