New Debt Withdrawal Reaches IDR266.3 Trillion by July 2024

JAKARTA - The Ministry of Finance noted that the realization of debt financing or new debt withdrawals until July 2024 amounted to IDR266.3 trillion or increased by 36.6 percent compared to the same period in 2023.

Finance Minister Sri Mulyani Indrawati explained that the realization of debt financing had only reached 41.1 percent of this year's target of IDR648.1 trillion.

"This is only the seventh month. Although the growth is quite high, because last year with our quite high income, from various booming commodities, we put a very deep brake on debt financing," said Sri Mulyani written on Wednesday, August 14.

Meanwhile, the realization of debt financing came from government securities (SBN) amounting to IDR253 trillion or increased by 37.5 percent compared to the same period last year of IDR184.1 trillion. The realization of debt financing came from SBN reaching 38 percent of this year's target of IDR666.4 trillion.

Meanwhile, the realization of debt financing originating from loans amounted to IDR13.3 trillion or increased by 21.6 percent when compared to the loan withdrawals in the same period last year of IDR11 trillion. The realization of debt financing originating from loans reached 72.6 percent of the target this year of IDR18.4 trillion.

Sri Mulyani said that in order to maintain fiscal health, the government does not only rely on debt to finance the budget deficit needs but also relies on non-government debt financing.

The Ministry of Finance noted that the realization of non-government debt financing amounted to IDR49.3 trillion or grew by 61.8 percent when compared to the loan withdrawals in the same period last year of IDR30.5 trillion.

Meanwhile, the realization of non-government debt financing has only reached 39.4 percent of the target this year of IDR125.3 trillion.

With this development, overall budget financing realization until July 2023 reached IDR217 trillion or 41.5 percent of the portion in the 2024 State Budget of IDR522.8 trillion.

Meanwhile, the realization grew 31.9 percent from the same period last year of IDR164.5 trillion.

"The growth is quite high compared to last year, but it is relatively on track to our posture. Last year was exceptional because the reception was extraordinarily good," he explained.