Prabowo-Gibran Government Overshadowed By Debt Of Falling Tempo Jokowi Worth IDR 3,748.2 Trillion

Prabowo Subianto and Gibran Rakabuming Raka. (Photo: Doc. ANTARA)

JAKARTA - Indonesian Center of Reorm on Economics (CORE) economist Ahmad Akbar Susamto warned that the Prabowo Subianto-Gibran Rakabuming Raka government needs to be careful.

Especially regarding the maturity debt inherited by President Joko Widodo (Jokowi).

In Akbar's presentation, the government's maturing debt consisting of state securities (SBN) reached IDR 3,245.3 trillion for the period 2025 to 2029.

Meanwhile, debt due to loans in the same period reached IDR 502.9 trillion. In total, the government's debt matured at IDR 3,748.2 trillion.

Akbar said Prabowo-Gibran needed to be careful because at the same time he also had to realize and carry out many campaign promises.

At the same time shopping went wide, receipts slowed, there was a widening deficit. The increasing debt is already due again," he said in a discussion on Economic Risk Mitigation ahead of the New Government, in Jakarta, Tuesday, July 23.

Therefore, Akbar warned of the next government. Because, when the government decided to close the deficit, there was interest that needed to be paid. He also said that the total debt matured at IDR 3,748.2 trillion did not include debt interest.

"So you have to be careful. It must be noted that expensive costs will also burden the state budget in the end," he said.

The current condition of government debt is still under the provisions in Law Number 17 of 2023 concerning State Finance.

Where the regulation sets a safe limit for the government debt ratio of 60 percent of gross domestic product (GDP) and a maximum deficit of 3 percent of GDP.

The Ministry of Finance noted that until the end of May 2023, the position of government debt had reached IDR 8,353.02 trillion.

With this amount of debt, the government's debt ratio as of the end of May reached 38.71 percent of GDP.

Akbar said, if referring to the standards set by the International Monetary Fund (IMF) which stipulates that the comparison of government debt with income is in the range of 90 to 150 percent, then this condition is not safe.

Furthermore, Akbar said, the government's debt ratio has reached 300 percent by the end of May 2024.

This figure increased from the position at the end of December 2023 which was 292.6 percent.

"So the position of government debt to income is certainly not safe because it exceeds the limit set by the IMF in the range of 90 to 150 percent. We are already 300 percent," he explained.