Get Ready! Next Year's Government Debt Indications Of Swelling

Illustration (Photo: Doc. Antara)

JAKARTA - Today the government through the Minister of Finance (Menkeu) Sri Mulyani has officially submitted the macroeconomic framework and fiscal policy points to the DPR to be discussed together in the 2023 State Revenue and Expenditure Budget Plan (RAPBN).

The document contains an outline of the Indonesian economy in the next year as well as a number of indicators of the achievement targets to be aimed at, such as economic growth, lifting of gas and oil, to the target of the budget deficit.

In his presentation at the Plenary Session, the Minister of Finance briefly explained about the estimated ratio of government debt in the 2023 period. He said, the amount of debt is believed to be in the range of 40.58 percent to 42.42 percent of gross domestic product of GDP.

"The debt ratio remains under control within manageable limits," said the Minister of Finance at the Parliament Complex on Friday, May 20.

In the editorial search, this figure was recorded to have exceeded the level set by the current government. The latest April 2022 state budget report stated that the debt to GDP (gross domestic product) ratio in March 2022 was 40.39 percent with a value of IDR 7,052 trillion.

This book is also a new strata of government debt after previously being in the psychological level of IDR 6,000 trillion.

Just so you know, so far the pattern of Indonesia's GDP has always been increasing from year to year. This means, if Indonesia's GDP reference remains next year, the value of debt will certainly increase because the debt ratio is pegged to a higher level.

Moreover, if the GDP reference increases with the estimated debt ratio also increasing, it is certain that the value of debt will rise even higher.

However, the government has always adhered to Law No. 17 of 2003 concerning State Finances which mandates a maximum allowable debt limit of 60 percent of gross domestic product.

"The deficit and debt ratio will still be controlled within safe limits while encouraging a positive primary balance," said Minister of Finance Sri Mulyani.