Rupiah Touches IDR 16,300 Per US Dollar, Ministry Of Finance Ensures Government Debt Burden Remains Safe

Rupiah Dollar (Photo: antara)

JAKARTA - The Ministry of Finance (Kemenkeu) explained that the weakening of the rupiah exchange rate which almost touched IDR 16,300 per US dollar will not affect the condition of the government's debt burden.

Quoting Bloomberg, the Rupiah exchange rate is Wednesday, June 12, 2024, the rupiah spot exchange rate slightly decreased by 0.06 percent to the level of Rp. 16,301 per US dollar until 14.34 WIB.

The Director General of Financing and Risk Management of the Ministry of Finance, Suminto, said that currently the government's debt portfolio is more dominated by debt with rupiah denomination with a portion of 82 percent.

Meanwhile, government debt in the form of relatively smaller foreign currency is only 18 percent of the total government debt.

"When we pay off debt obligations, the exchange rate is certainly affected, so of course we also manage this well," Suminto told the media crew, Tuesday, June 11.

Suminto said the risk of weakening the rupiah against the government's debt burden would remain well managed.

"With our 18 percent portion of our foreign exchange debt, Alhamdulillah, the risk is quite well managed," he explained.

Meanwhile, based on data from the Ministry of Finance (Kemenkeu), debt maturity as of April 30, 2024 for the period 2025 to 2029 reached IDR 3,748 trillion. As for the details in 2025 of IDR 800.33 trillion, in 2026 it was IDR 803.19 trillion, while in 2027 it was IDR 802.61, in 2028 it was IDR 719.81 trillion and in 2029 it was IDR 622.3 trillion.

In the position of government debt, until April 2024 it was IDR 8,338.43 trillion. Meanwhile, in nominal terms, the government's debt position increased by IDR 76.33 trillion, an increase of around 0.92 percent when compared to the debt position at the end of March 2024 which amounted to IDR 8,262.1 trillion.

Meanwhile, the ratio of government debt is equivalent to 36.5 percent of Indonesia's gross Domestic Product (GDP).

Meanwhile, this value is still below the safe limit of 60 percent of GDP according to Law Number 17/2003 concerning State Finance. In fact, it is still better than being established through the Medium-Term Debt Management Strategy for 2024-2027 at the level of 40 percent.

Meanwhile, based on instruments, government debt consists of two types, namely state securities (SBN) and loans. The majority of government debt in April 2024 is still dominated by SBN instruments, namely 32.1 percent and the remaining 4.4 percent of loans.

Furthermore, if it is detailed, the amount of government debt in the form of SBN reaches Rp7,333 trillion. The value comes from domestic SBN of Rp5,899 trillion, namely from Government Securities of around Rp4,714 trillion and State Sharia Securities (SBSN) reaching Rp1,185 trillion. Meanwhile, the amount of government debt in the form of loans is Rp1,005 trillion.