Sri Mulyani Reminds Debt Management In 2025 Needs To Be Handled Carefully

Minister of Finance, Sri Mulyani Indrawati. (Photo: Doc. Ministry of Finance)

Minister of Finance Sri Mulyani Indrawati reminded that debt management in the 2025 fiscal year needs to be handled carefully.

The interest rate that persists is expected to continue (higher for longer), so it will have an impact on the state budget.

"Higher for longer definitely affects spending, especially debt interest spending. Therefore, we must be very careful in managing debt in such a trend," said Sri Mulyani during a Working Meeting with the DPR in Jakarta, quoted from Antara, Thursday, June 6.

The Ministry of Finance has set a target for the 2025 State Revenue and Expenditure Budget deficit (APBN) to be in the range of 2.45 percent to 2.82 percent.

Investment financing is projected to be between 0.3 percent to 0.5 percent of gross domestic product (GDP) and debt ratios in the range of 37.98 percent to 38.71 percent.

Primary balance is pegged in the range of 0.3 percent to 0.61 percent.

Sri Mulyani, during the 19th DPR Plenary Meeting of Trial Period V 2023-2024 in Jakarta, Tuesday (4/6), stated that the 2025 State Budget was designed to be expansive, but remains focused and measurable to maximize fiscal capabilities for the next government program.

In the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) in 2025, Sri Mulyani targets gross domestic product (GDP) growth in the range of 5.1-5.5 percent. According to him, this growth target is ambitious, but still realistic.

Then to keep fiscal conditions healthy in welcoming the new government, the Minister of Finance said that the government had designed debt ratios to safe limits in the range of 37.9-38.71 percent of GDP.

"Financing will be maintained and managed through innovative, prudent, and sustainable financing through various Indonesian debt management which continues to be benchmarked globally," he said.

The State Treasurer said that to maintain debt ratio, the Ministry of Finance would maximize internal financing such as through the Public Service Agency (BLU) and State-Owned Enterprises (BUMN).