Debt Ratios Up 10 Percent During The Pandemic, Government: Better Than Malaysia, Thailand Even China

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) informed that the debt position as of the end of September 2022 is IDR 7,420.4 trillion. This figure is equivalent to 39.3 percent of gross domestic product (GDP).

It is stated that the level of debt to GDP is still relatively safe because it is below the maximum threshold of 60 percent if it refers to the State Finance Law Number 17 of 2003.

However, there has been a trend of increasing debt ratios in recent years, especially since the COVID-19 pandemic hit.

"In 2020-2021, the increase in debt ratio in Indonesia will reach 10.8 percent," wrote the latest edition of the Ministry of Finance report quoted by VOI on Tuesday, October 25.

The institution led by Minister Sri Mulyani then compared the conditions experienced by RI with several friendly countries in the region.

"The percentage increase in the debt ratio looks relatively high, but the increase is actually relatively low from other countries, such as Thailand 17 percent, the Philippines 22.1 percent, China 11.8 percent, Malaysia 13.6 percent and India 16.5 percent in the same period," said the Ministry of Finance.

Furthermore, even though the debt ratio is lower than that of other countries, the government ensures that it remains committed to continuing to manage debt carefully.

"To maintain debt management accountability, the government will always refer to laws and regulations within the framework of implementing the APBN, which is planned with the DPR, approved and monitored by the DPR, and audited and audited by the BPK," said the Ministry of Finance.

For information, until the first semester of 2022, the government has issued IDR186.1 trillion to pay debt interest. This amount consists of IDR181.4 trillion in payments of interest on domestic debt and IDR4.6 trillion for the payment of interest on foreign debt.

Meanwhile, the allocation of the debt interest payment budget for this year in accordance with the 2022 State Budget is IDR 405.9 trillion or around 13 percent of the total state expenditure of IDR 3,106.4 trillion.