Debt Falling Tempo RI IDR 800 Trillion In 2025, Sri Mulyani Calls The Impact Of COVID-19

Minister of Finance Sri Mulyani (Photo: Antara)

Minister of Finance Sri Mulyani Indrawati assessed that large maturing debt of IDR 800.33 trillion in 2025 would not be a problem as long as Indonesia's state budget, economy and politics remained stable.

"The maturity of the government debt, this is what is often analyzed, if there is a point that the risks faced by a country are not at a magnitude, but in the country's ability to revolving at a cost that is considered fair," he said in a working meeting with Commission XI DPR RI, Thursday, June 6.

According to Sri Mulyani, when the country remains credible, the state budget is good, the economic condition is good, the political condition is stable so that the interest rate that rolls or revolving is almost certain, the risk is small because the market thinks the country is still safe.

"So that the due date seen here in 2025, 2026, 2027 which looks high is not a problem as long as the perception of the state budget for economic fiscal policy and of course politics remains the same," he explained.

According to Sri Mulyani, holders of state debt securities who are due will not immediately take it because it is still considered an investment. It is different if this stability condition is disrupted, debt securities holders can release it and run away from Indonesia. Therefore credibility, and sustainable, is important.

Sri Mulyani said that the high debt payment due to the COVID-19 pandemic was due to the COVID-19 pandemic. At that time, Indonesia needed nearly Rp1,000 trillion in funds for additional spending because state revenues fell 19 percent because economic activity stopped.

"So if 2020 is the maximum due of our pandemic in 7 years and now in concentration, in the last 3 years 2025, 2026 and 2027, some in 8 years. This then raises perceptions of how many have piled up," he said.

Sri Mulyani explained this because of the cost of the pandemic and is part of the burden sharing scheme. "That's the cost of a pandemic based on the agreement between us and BI to carry out burden sharing so that BI countries are good, fiscal credible and political acceptable, we agree on the instrument," he said.

Previously, Commission XI of the DPR revealed that Indonesia's debt due next year or 2025 would reach IDR 800 trillion, with details of IDR 705.5 trillion in the form of Government Securities (SBN) and IDR 94.83 trillion in the form of loans.