Warning From MUI To The Government! Debt Management Should Be Used For Productive Things

Illustration (Photo: Doc. Antara)

JAKARTA - Secretary General of the Indonesian Ulema Council (MUI) Amirsyah Tambunan said that the government needs to pay attention to the financing aspect in state administration. According to him, these financial instruments have potential problems as well as separate solutions if managed wisely.

“More and more debt and financing must be used for productive activities and things,” he said in a webinar of the MUI Second People's Economic Congress which was also attended by the Minister of National Development Planning/Head of Bappenas Suharso Monoarfa on Wednesday, November 10.

According to Amirsyah, it is also necessary to pay attention to whether the government's financing can encourage sustainable economic growth.

"This financing is quite important for our economy, but what is more important is how economic growth can continue and debt risk remains under control," he said.

In the previous VOI report, the Ministry of Finance (Kemenkeu) reported that the government's debt as of September 2021 had reached IDR 6,711.52 trillion. This amount is equivalent to 41.38 percent of gross domestic product (GDP).

Just so you know, the amount of debt that is close to IDR 7,000 trillion is a new level from the previous IDR 5,000 trillion to IDR 6,000 trillion. The swelling value is considered by state officials to be quite safe.

This is because the government always refers to the State Finance Law Number 17 of 2003 and the APBN Law which states that the maximum debt limit cannot exceed 60 percent of GDP.