Indonesia's Debt Swells, Sri Mulyani: We Are Still Better Than The US And China

JAKARTA - The government ensures that although the deficit in the national income and expenditure budget (APBN) is widening, Indonesia's debt is still better than that of several other countries. This is because the widening fiscal deficit in 2020 is still being maintained.

Finance Minister Sri Mulyani said the increase in debt occurred throughout the country. This is because many countries have widened their budget deficits, including countries that have been implementing deficits prudently.

In 2020, the deficit experienced by Indonesia will reach 6.3 percent, this will make Indonesia's debt ratio increase to 38.5 percent, higher than in 2019 which reached 30.5 percent.

However, Sri Mulyani said, Indonesia's debt is still lower than Japan, Italy and the United States, whose increases have reached 100 percent of gross domestic product (GDP). As well as Indonesia's debt is still more controllable than China, which has increased by 60 percent.

"Japan has a debt ratio of 266.2 percent of GDP. Germany alone has debts of 73 percent of GDP. Then China's debt reaches 61.7 percent and Thailand's debt reaches 50.4 percent," he said, Monday, October 19.

The increase in debt, said Sri Mulyani , also occurred in countries that were very conservative regarding debt. For example Germany, which experienced an increase in debt from 59.5 percent of GDP in 2019 to 73.3 percent in 2020. This happened because the country's budget changed from a surplus of 1.5 percent in 2019 to a deficit of minus 8.2 percent this year.

This state treasurer said, Indonesia's public debt level was still maintained and lower than other countries. This is in line with the economic recovery that will be seen at the end of 2020.

"Debt is still maintained with minimal additional debt," he explained.

Sri said, in 2021 Indonesia's debt was pegged at 41.8 percent of GDP. However, the deficit was still reduced to minus 5.5 percent.

"We've seen an economic recovery," he said.

The following is a list of projected debt-to-GDP ratios for various countries from 2019 to 2020:

1. Japan: 238.0 percent to 266.2 percent.

2. Italy: 134.8 percent to 161.8 percent.

3. United States (US): 108.7 percent to 131.2 percent.

4. France: 98.1 percent to 118.7 percent.

5. Canada: 88.6 percent to 114.6 percent.

6. UK: 85.4 percent to 108 percent

7. India: 72.3 percent to 89.3 percent.

8. Germany: 59.5 percent to 73.3 percent.

9. Malaysia: 57.2 percent to 67.6 percent.

10. China: 52.6 percent to 61.7 percent.

11. Thailand: 41.1 percent to 50.4 percent.

12. Philippines: 37 percent to 48.9 percent.

13. Indonesia: 30.5 percent to 38.5 percent.