Government Ensures Debt Loans Will Be Used For National Strategic Project Development

The Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance ensures that loans made by the government are used to finance the development of national strategic projects (PSN), can run optimally.

Director of Loans and Grants, Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance Dian Lestari said that his party ensured that loans made by the government would be used to finance national strategic projects (PSN), so that they could run optimally.

Meanwhile, the position of government debt until November 30, 2023 was IDR 8,041.01 trillion. The debt is dominated by Government Securities (SBN) of IDR 7,048.9 trillion or 88.61 percent of total debt and loans of IDR 916.03 trillion or 11.39 percent of total debt.

On the other hand, specifically for debt through loans consisting of foreign loans amounting to IDR 886.07 trillion and domestic loans amounting to IDR 29.97 trillion. Most foreign loans came from multilateral loans of IDR 540.02 trillion followed by bilateral loans of around IDR 268.57 trillion.

Dian said that the loan was needed to meet the APBN deficit financing, as well as finance priority projects directly

"The government continues to strive so that projects financed through loans can be carried out optimally, so that the benefits obtained by the community can be maximized," said Dian in a written statement, Sunday, December 31.

According to Dian, many national priority projects have been financed through loans. Among them, the construction of Cisumdawu toll road infrastructure, Medan-Kualanamu toll roads, Solo-Kertosono toll roads, Patimban Port construction, and Jakarta MRT.

Then, projects for educational institutions, such as the construction of ITB, the construction of UGM, and the development of UIN Sunan Ampel. Also projects for health facilities, such as the construction of the University of Indonesia Hospital, Sutomo Pontianak Hospital, and Ramelan RSPAL.

In addition, the development of electricity facilities such as PLTPB Ulubelu and PLTA Asahan III, agricultural and rural development programs Read Programme, and community clean water facilities through Pamsimas II.

According to Dian, development projects financed through these loans have had a positive impact on the community, especially in driving the economy in the regions.

"For example, the construction of toll roads can strengthen connectivity between regions so that it will accelerate distribution channels. This will stimulate economic growth in the surrounding areas," he explained.

Then according to him, one of the benefits of the construction of projects financed by foreign loans is generally supported by the latest technology, so that technology transfers can be obtained for domestic industries.

"The consideration in utilizing loans to finance projects/activities is that they tend to have better output through the latest technology and'sharing experience' owned by lenders," he concluded.