AMIN Economic Team: High State Debt Ratio Will Disrupt Capital Market Performance

Illustration (Photo: Doc. Antara)

The presidential candidate pair (candidate) Anies Baswedan and vice presidential candidate (cawapres) Muhaimin Iskandar said that his party would reduce the ratio of state debt to gross domestic product (GDP) to 30 percent if elected as the leader of the upcoming Republic of Indonesia.

Anies Baswedan and Muhaimin Iskandar's economic team, Wijayanto Samirin, said the candidate pairs would work hard so that the state would not add debt.

According to Wijayanto, the debt-to-GDP ratio will disrupt national finances, including capital market performance.

"Our debt to GDP ratio will push a maximum of 30 percent. It's nothing, we have to work hard so that we don't get a little debt, a little bit of debt, cause crowding out that is detrimental to our financial world, including the capital market," said Wijayanto in the 2024-2029 Investment Policy and Capital Market Administrative agenda in Jakarta, Monday, January 8.

Wijayanto assessed that candidate pairs number 1 in the capital market were not only interpreted as a long-term source of funds, but also education for corporations to encourage transparency.

Currently, he said, the capital market is only enjoyed by certain groups.

"In fact, in many countries, retirees can still live comfortably because they have assets in the capital market. We will encourage this," he said.

Thus, Wijayanto emphasized that his party wants to create a reliable capital market, one of which is by providing legal certainty and issuing innovative policies.

"PR has a high legal certainty, consistency of regulations, eradication of corruption, people's purchasing power, bureaucratic quality, industrialization, political stabilization and macro stabilization and so on," he said.