Build A Campus Using Sharia Debt Instruments, Sri Mulyani: God Willing, We Can Pay

Finance Minister Sri Mulyani (Photo: Screenshot of the Kalimantan Institute of Technology Youtube)

JAKARTA - Minister of Finance, Sri Mulyani, emphasized that the government's financing strategy by releasing debt securities was quite helpful in meeting national development targets.

One of these positive impacts can be seen from the construction of the Kalimantan Institute of Technology which is financed through the release of State Sharia Securities (SBSN).

"So this campus is a capital expenditure funded by State Sharia Securities. We did record the debt, but we have an asset, namely this building", she said through a virtual channel, Wednesday, January 5.

The Minister of Finance added that she asked the public not to be led into inappropriate opinions about debt. This is because the government always prioritizes the principle of prudence in managing state finances.

"I want to emphasize that in looking at the perspective of the state debt, it must be reviewed from the entire balance sheet: there is income, there are operating expenses enjoyed by the community, such as social assistance, subsidies, and also in the form of salaries for ASN (State Civil Apparatus) at the center and in the regions", she said.

The Minister of Finance revealed that the government's spending is oriented towards increasing growth. This is intended so that the fulfillment of debt obligations can be carried out properly in the future.

"If we have good spending, good infrastructure, quality human resources, this will make Indonesia grow. And if it is achieved, then surely we can pay this SBNS again. God willing, come back safely. That is what is included in the state's financial planning", she said.

Citing the latest data released by the Ministry of Finance, the position of government debt as of the end of November 2021 was at IDR 6,713.24 trillion with a ratio to gross domestic product (GDP) of 39.84 percent.

Of this amount, as much as IDR 874.74 trillion of which came from the release of SBSN in the domestic market. Meanwhile, the other IDR 284.25 were State Sharia Securities in foreign currencies.