What Is A Systemic Failed Country? Is Indonesia Included?

What Is Systemic Failure Country? (Prananta Haroun - Unsplash image)

YOGYAKARTA - Regarding the country's systemic failure, it is widely discussed after Indonesia is included in this group. Let's find out what is a systemic failure country?

Director of Political Economy & Policy Studies (PEPS) Anthony Budiawan defines a systemic failure country as a country with higher debt interest payments than health payments.

Indonesia masuk negara gagal sistemik. APBN 2022: Biaya Kesehatan Rp176,7 T; Bunga pinjaman: Rp386,3 Tr. UN Chief, Ant ruhio Guterres mengatakan, negara yang membayar bunga pinjaman lebih besar dari anggaran kesehatan atau pendidikan, masuk kategori negara gagal sistemik, cuit Anthony dalam akun Twitter pribadinya sepekan lalu.

The statement, he was accompanied by a video showing United Nations (UN) Secretary-General Antonio Guterres conveying indicators of a country's failure.

Through the video, Antonio said that 3.3 billion people or almost half of the world's population live in countries that spend their budget to pay off debt interest instead of health or learning. This condition was said by Antonio Guterres as a systemic failed country.

The Ministry of Finance has also opened its voice regarding Anthony Budiawan's evaluation. Special Staff to the Minister of Finance for Strategic Communication Yustinus Prastowo said Anthony's statement did not fit.

The reason is that in total, Indonesia's learning and health budget in 2022 will reach Rp649.3 trillion or greater than interest expenditures of Rp386.3 trillion. The budget for these two areas also increased in 2023 2023 to reach Rp791 trillion.

Thus, if the size of the country's systemic failure is a buildup of health spending and learning compared to interest spending, then Indonesia's position is far from systemic failure.

Moreover, Indonesia's economy has grown positively above 5 percent in 6 consecutive quarters. In addition, Indonesia has also succeeded in fiscal consolidation supported by solid income.

The proof is that the Standard and Poors (S&P) rating agency also maintains Indonesia's Sovereign Credit Rating at BBB with a normal outlook on July 4, 2023.

With this evidence, Yustinus Prastowo said it would not be right for Indonesia to be said as a systemic failure country. Moreover, throughout history, Indonesia has never failed to pay its debts.

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