Government Debt Reaches IDR 8,502.69 Trillion Until July 2024

Illustration of state debt (Doc. ANTARA)

JAKARTA - The Ministry of Finance (Kemenkeu) reported that the government's debt position reached IDR 8,502.69 trillion in July 2024. This is based on the State Revenue and Expenditure Budget (APBN) document of Kita, the government's debt position increased by IDR 57.82 trillion, an increase of 0.68 percent when compared to the debt position at the end of June 2024 which amounted to IDR 8,444.87 trillion.

Meanwhile, government debt is dominated by State Securities (SBN) instruments until the end of July 2024, the issuance of SBN was recorded at IDR 7,642.25 trillion or contributed 87.76 percent. The issuance was also divided into domestic SBN and foreign exchange SBN (foreign currency).

In the report, the Domestic SBN was recorded at IDR 5,993.44 trillion, consisting of Government Securities (SUN) of IDR 4,797.21 trillion and State Sharia Securities (SBSN) of IDR 1,196.23 trillion.

Meanwhile, SBN Valas amounted to Rp1,468.81 trillion, with details, SUN amounted to Rp1,073.27 trillion and SBSN worth Rp395.54 trillion.

In addition, the government's loan debt until the end of July 2024 amounted to Rp1,040,44 trillion or contributed 12.24 percent of all government debt positions. This loan is detailed in two categories, namely domestic loans amounting to Rp39.95 trillion and foreign loans amounting to Rp1,000.49 trillion.

Meanwhile, for foreign loans, namely bilateral loans of IDR 269.32 trillion, multilateral loans of IDR 602.46 trillion, and commercial bank loans of IDR 128.71 trillion.

Meanwhile, the ratio of government debt to Gross Domestic Product (GDP) is 38.68 percent. This figure is down when compared to the debt-to-GDP ratio in the previous month which was 39.13 percent.

Meanwhile, debt portfolio management plays a major role in maintaining overall fiscal sustainability. Therefore, the government consistently manages debt carefully and measurably by maintaining the risk of interest rates, currencies, liquidity, and optimal maturity.

The debt ratio, which was recorded at the end of July 2024, which was 38.68 percent of GDP, is consistently maintained below the safe limit of 60 percent of GDP in accordance with Law Number 17 of 2003 concerning State Finance.

"The government manages debt carefully and measurably to achieve an optimal debt portfolio and supports the development of the domestic financial market," quoted in the KITA State Budget report, Sunday, August 18.

In addition, the government prioritizes the procurement of debt with a medium-long period and actively manages debt portfolios.

As of the end of July 2024, the government's debt maturity profile is calculated to be quite safe with a weighted average maturity (ATM) at 8.00 years.

"Disciplinary government debt management also supports the results of the credit rating assessment of Indonesia's sovereign rating," he said.