Debt Withdrawal Increases, Puan: Bitter Choice

DPR Speaker Puan Maharani (Photo: screenshot of youtube setpres by Fakhri Rezy/VOI)

Chairman of the Indonesian House of Representatives (DPR) Puan Maharani said the State Revenue and Expenditure Budget (APBN), as one of the strategic instruments in the administration of state government.

According to Puan, the APBN is experiencing a very deep correction to the fiscal space. This is to be able to handle various affairs of the people's needs.

In addition, Puan conveyed that the decline in tax revenues, and the increasing need for subsidy spending were very large.

"So the bitter choice taken with a very large debt withdrawal," he said at the Opening of the First Session of the DPR RI for the 2024-2025 Session Year.

Therefore, Puan expressed her gratitude for mutual cooperation, working with all stakeholders from the DPR RI, the Central Government, Regional Government, TNI, POLRI, BUMN, Private, MSMEs and all people, in maintaining the national economy.

"We should be grateful for this, because many experiences of other countries have not fully recovered, especially since the economy can grow 5 percent every year," he said.

For information, in our State Budget report, the amount of government debt until the end of July 2024 reached IDR 8,502.69 trillion.

Meanwhile, this is in line with the general policy of debt financing to optimize domestic financing sources and utilize foreign debt as a complement, the majority of government debt comes from within the country with a proportion of 70.96 percent.

Meanwhile, based on the instrument, the composition of government debt is mostly in the form of SBN which reaches 87.76 percent.