Good News From The Ministry Led By Sri Mulyani! Government Debt Declared, But Unfortunately Still Above IDR 7,000 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA – The Ministry of Finance (Kemenkeu) reported that there was a decline in government debt in April 2022 to Rp 7,040,32 trillion or equivalent to 40.39 gross domestic product (GDP) from the previous Rp 7,052.50 trillion or equivalent to 39.09 GDP in March. 2022.

This shows that the government debt has decreased to around Rp. 12.18 trillion in one calendar month.

"Nominally, there has been a decrease in the total outstanding and debt-to-GDP ratio compared to the realization in March 2022," said the Ministry of Finance's minutes, quoted by the Editors on Wednesday, May 25.

In detail, government debt is dominated by SBN instruments which account for 88.47 percent of the entire composition. In terms of currency, government debt is dominated by the domestic currency (rupiah), which is 71.13 percent.

"Government debt is used as a counter-cyclical to meet productive spending needs, such as health, education, social protection, physical DAK, village funds, and infrastructure development to reduce the infrastructure gap index," said the Ministry of Finance.

To note, Law No. 17 of 2003 concerning State Finance mandates a maximum debt limit of 60 percent of gross domestic product.

"The management of government debt is carried out in a prudent, flexible and opportunistic manner so that it is maintained within safe and reasonable limits, and is under control," said the Ministry of Finance.