The Need For RI Debt Financing For 2023 Is IDR 696.4 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Director General of Financing and Risk Management of the Ministry of Finance (Kemenkeu) of Sumito stated that the debt financing requirement for the 2023 period was IDR 696.4 trillion.

According to him, this amount is an accumulation of the fulfillment of a budget deficit of IDR 598.2 trillion and non-debt financing of IDR 98.2 trillion.

"Prudent and sustainable debt financing management by controlling debt risk at a safe and credible level," he said when fulfilling a working meeting invitation with Commission XI of the DPR at the Senayan Parliament Complex, Jakarta.

Sumito explained that the debt financing needs will be met from the issuance of state securities (SBN) with a portion of 90-95 percent. While the remaining 5-10 percent will be carried out by means of loan withdrawals.

"The deepening of the domestic SBN market and the expansion of the investor base will be pursued towards financing independence through increasing retail SBN issuance," he said.

Sumito added that the government will also utilize more budget balance (SAL) to maintain economic stability and anticipate uncertainty.

"Optimizing retail SBN is expected to encourage the development of domestic financial markets in creating financing independence," he added.

In detail, SBN financing sources will consist of non-retailed domestic SBN, retail SBN, and foreign exchange. Meanwhile, the source of loan financing is in the form of program loans, project foreign loans, and domestic loans.

"We will prioritize domestic financing sources to control the risk of exchange rates," he stressed.

Sri Mulyani's subordinate ensured that the foreign exchange SBN (valus) was a complement to avoid crowding out effect and maintaining foreign exchange reserves.

"Foreign loans will be optimized as a fiscal framework for debt financing," concluded Sumito.

Quoting the official broadcast of the Ministry of Finance, it is known that the total government debt until the end of December 2022 is IDR 7,733.99 trillion.

This value is equivalent to 39.57 percent of gross domestic product (GDP). Just so you know, in the law on state finances, it is stated that the maximum debt limit allowed is a maximum of 60 percent of GDP.