Deputy Minister Of Finance: Debt To GDP Ratio Will Be At Level 40 Percent At The End Of The Year

Deputy Minister of Finance Suahasil Nazara (Photo: Capture the screenshot of Bank Danamon's Youtube)

JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said that the government saw an opportunity to increase the debt-to-gross domestic product ratio (GDP) or the debt to gross domestic product (GDP) ratio at the end of next year.

According to him, the projection is in line with the draft State Revenue and Expenditure Budget (APBN) which is still being designed in a deficit condition.

"If until the end of this year (debt to GDP ratio) around 40 I think it's still okay," he said when speaking at the economic forum titled The Indonesia 2023 Summit on Thursday, October 27.

Suahasil explained that the debt-to-GDP ratio is currently at the level of 39 percent. This figure is classified as still safe if it follows the State Finance Law Number 17 of 2003 which provides a maximum limit of 60 percent.

"Indonesia is still far below the space provided by law," he said.

Sri Mulyani's deputy then compared RI's condition with several countries which were unlucky.

Many countries during the two years of the pandemic, the debt to GDP has soared. In fact, some countries have reached the level where the government must ask the parliament for permission to increase debt space," he said.

For information, the position of government debt until September 2022 is IDR 7,420.4 trillion 39.3 percent or equivalent to GDP.

VOI noted that Indonesia experienced an increase in debt ratio of up to 10.8 percent in the period 2020-2021 due to the high spending rate.

Di sisi lain, sektor pendapatan negara tertekan cukup dalam akibat kegiatan ekonomi yang harus terhenti akibat pembatasan mobilitas guna meredam penyebaran COVID-19.