The 2025 State Budget Deficit Will Have An Impact On Debt Due To Tempo In The Prabowo-Gibran Government Period

JAKARTA - Deputy Chairman of the Budget Agency (Banggar) of the Indonesian House of Representatives Cucun Ahmad Syamsurijal reminded the government regarding debt due in 2025 which will have a profound impact on the 2025 State Budget deficit.

Therefore, Cucun conveyed that in the preparation of the policy for determining the 2025 budget deficit, it is necessary to pay attention to changes in state income, prices, and oil lifting.

"The potential debt that matures in 2025 will have an impact on the 2025 State Budget deficit," Cucun said at the 21st Plenary Meeting of the V Session Period in 2024, Tuesday, July 9.

Cucun explained that what will be faced by the new government, namely the President and Vice President Elect Prabowo Subianto-Gibran Rakabuming Raka, is not an easy thing considering that the global economic condition is not doing well so that it will affect the domestic economy. Therefore, it must be very important to pay attention to the preparation of the 2025 State Budget.

"How about debt rescheduling and how debt is due, which we must really be prudent in the preparation of the APBN, because the tools are the APBN, how to maintain primary balance. Don't let us be too eager to create new programs, while the fiscal conditions are also limited," he said.

In addition, Cucun reminded that this year's state revenue is not expected to reach the target due to uncertain global conditions.

"We are also a bit worried that if the second semester does not meet the target, it will become a burden for the new government in the future to accelerate, so we prepare a framework for the Macroeconomic Framework and the Principles of Fiscal Policy (KEM PPKF) in 2025," he said.

Previously, the Director of Government Securities (SUN) of the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, Deni Ridwan, said that regarding due debt of IDR 800 trillion in 2025, as long as the financial market is good, debt due next year is not a problem.

"Mrs. (Menkeu) said yesterday that as long as our financial markets were good, during a statement from the public, from good investors it was something we could manage," he said after a press conference with the media crew in Jakarta, Monday, June 10.

However, Deni said that the government's average debt is due per year in the range of Rp. 600 trillion to Rp. 700 trillion. Meanwhile, debt is due which will reach Rp. 800 trillion next year due to debt withdrawals issued in the context of handling the Covid-19 pandemic.

"Usually it's around Rp. 600 trillion to Rp. 700 trillion. Only next year it will mature because there is an SBN issued in the context of handling the Covid pandemic, so some are around Rp. 100 trillion owned by BI," he added.

Deni said that in the future the government will continue to coordinate what is needed in order to maintain fiscal sustainability.

"So this is something that can be discussed, there is already a team from the government with BI for us to discuss how we will handle SBN which is due next year, which is actually published in order to handle the pandemic so that later we can get the best solution, on the one hand also in order to maintain our fiscal sustainability," he said.