Government Debt Reaches IDR 8,041 Trillion Until The End Of November 2023

JAKARTA - The government through the Ministry of Finance (Kemenkeu) announced that the government's debt position until November 30, 2023 reached IDR 8,041.01 trillion. This figure slightly increased by IDR 90.49 trillion when compared to the previous month's IDR 7,950.52 trillion.

"The amount of government debt in this period reached Rp. 8,041.01 trillion with a debt to GDP ratio of 38.11 percent," wrote the Ministry of Finance in our APBN book, quoted Tuesday, December 19.

Meanwhile, the increase in debt made the ratio of government debt to gross domestic product (GDP) as of November 30, 2023 to 38.11 percent, up from the previous month which was at the level of 37.95 percent.

The government ensures that this position is still below the safe limit set in Law (UU) Number 17 of 2003 concerning State Finance which requires the ratio of government debt to be below 60 percent of GDP.

"The debt ratio value is lower than the end of 2022 and is still below the safe limit of 60 percent of GDP in accordance with Law Number 17/2023 concerning State Finance. This ratio is also still better than what has been established through the 2023-2026 Medium-Term Debt Management Strategy in the range of 40 percent," he explained.

Meanwhile, government debt consists of two types, namely in the form of state securities (SBN) and loans. Where the majority of government debt until November 30, 2023 was dominated by SBN instruments of 88.61 percent and 11.39 percent on loans.

In detail, the amount of government debt from SBN amounted to Rp7,124.98 trillion consisting of domestic SBN of Rp5,752.25 trillion originating from Government Securities of around Rp4,677.88 trillion and State Sharia Securities (SBSN) of Rp1,074.37 trillion.

While the rest came from government debt in the form of foreign currency SBN amounting to Rp1,372.73 trillion, consisting of Government Securities of around Rp1,033.24 trillion and State Sharia Securities (SBSN) of Rp339.49 trillion.

Furthermore, the government's debt in the form of loans amounted to Rp916.03 trillion consisting of domestic loans amounting to Rp29.97 trillion and foreign loans amounting to Rp886.07 trillion.

"The government conducts debt management carefully and measurably through the composition of currencies, interest rates, and optimal maturity," he said.

Until the end of November 2023, the mature profile of Indonesia's government debt is quite safe with a weighted average maturity (ATM) in the range of 8 years.

"The government prioritizes the procurement of debt with a medium-length tenor and actively manages debt portfolios," he explained.