The Capai Government Debt Is IDR 7,554.2 Trillion Ahead Of The Closing Year, Mostly From The Issuance Of Government Securities

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) stated that there was an increase in government debt towards the end of the 2022 period.

This was revealed in the December edition of the APBN report which stated that the government's debt to November was IDR 7,554.2 trillion or equivalent to 38.6 percent of gross domestic product.

This figure is higher when compared to October 2022 which was recorded at IDR 7,496.7 trillion or based on the GDP ratio at the level of 38.3 percent.

"Based on the type, government debt is dominated by state securities instruments (SBN) which reach 88.6 percent of the total debt composition at the end of November 2022," said the minutes quoted by the editor on December 27.

Meanwhile, based on currency, government debt is dominated by domestic currency (rupiah), which is 70.3 percent. This step is said to be one of the government's shields in dealing with high volatility in foreign currencies and its impact on paying foreign debt obligations.

"With a debt strategy that prioritizes issuance in rupiah currency, the portion of debt with foreign currencies in the future is expected to continue to decline and the risk of exchange rates can be maintained," said the Ministry of Finance.

Then, SBN ownership is currently dominated by banks and followed by BI. Meanwhile, ownership of foreign investors has continued to decline since 2019 which reached 38.5 percent. Until the end of 2021 it was recorded at 19 percent, and as of December 15, 2022 it reached 14.6 percent.

"The government is committed to continuing to manage debt carefully", said the State Budget report.

Furthermore, state officials also stated that the impact of normalizing monetary policy on the SBN market still needs to be watched out for.

"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 examined and audited by the BPK," concluded the minutes.