Government Debt Drops To IDR 8,461.93 Trillion

Rupiah (photo: dock. Antara)

SERANG - The Ministry of Finance (Kemenkeu) noted that the position of government debt until August 2024 was IDR 8,461.93 trillion, a decrease of IDR 40.76 trillion compared to the end of July 2024 which amounted to IDR 8,502.69 trillion.

Director of Financing Strategy and Portfolio, Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance Riko Amir, said that the decrease in debt was due to debt payments due during that period.

"The maturity period was not at one point in one year, it was also distributed. So when maybe that month, there was a very large maturity, so the debt fell," Riko said in the media gathering of the Ministry of Finance 2024, Thursday, September 26.

Based on the State Revenue and Expenditure Budget (APBN) document, the ratio of government debt to Gross Domestic Product (GDP) was 38.49 percent or decreased when compared to the previous month which was 38.68 percent.

Meanwhile, the debt ratio recorded until the end of August 2024 is still below the safe limit of 60 percent of GDP in accordance with Law Number 17 of 2023 concerning State Finance.

Riko explained that the debt ratio is still within safe limits and hopes that the debt ratio will continue to decline.

To note, until the end of August 2024, the government's debt maturity profile is quite safe with an average weighted maturity time maturity (ATM) at 7.95 years.

Interest rate and exchange rate risk are also under control, using fixed interest rates (80 percent total debt) and in rupiah (72.12 percent total debt). This is in line with the general policy of debt financing to optimize domestic financing sources and use foreign debt as a complement.

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

For information, based on instruments, the composition of government debt is dominated by State Securities (SBN) instruments whose contributions are 88.07 percent. Until the end of August 2024, the issuance of SBN was recorded at IDR 7,452.56 trillion, divided into domestic SBN and foreign exchange SBN (foreign currency).

Meanwhile, Domestic SBN was recorded at IDR 6,063.41 trillion, which was divided into Government Securities (SUN) amounting to IDR 4,845.68 trillion and State Sharia Securities (SBSN) amounting to IDR 1,217.73 trillion.

Meanwhile, the remaining foreign exchange (valas) SBN of Rp. 1,389.14 trillion was divided into Government Securities worth Rp. 1,025.14 trillion and State Sharia Securities of Rp. 364 trillion.