Sorry! The Government Wants To Withdraw New Debt Of IDR 775.86 Trillion Next Year

Illustration (Photo: Doc Antara)

The Ministry of Finance (Kemenkeu) plans to increase new debt or debt financing of IDR 775.86 trillion by 2025.

This plan is stated in the Presidential Regulation (Perpres) of the Republic of Indonesia Number 201 of 2024 which regulates the State Revenue and Expenditure Budget (APBN) for Fiscal Year 2025.

The debt financing target for 2025 has increased significantly, at 19.71 percent compared to the debt financing target in 2024 which reached IDR 648.1 trillion.

Debt financing in 2025 will consist of two main sources, namely the issuance of state securities (SBN) and loans. First, the issuance of net SBN is targeted to reach Rp642.56 trillion or decrease compared to the target of issuing SBN in 2024 which is Rp666.4 trillion.

Second, debt financing will come from net loans targeted at IDR 133.3 trillion, or an increase compared to this year's loan target of only IDR 18.4 trillion.

In detail, domestic loans (gross) are estimated at IDR 11.77 trillion, with part of this amount being used for the payment of principal installments for domestic loans of IDR 6.6 billion, so the government will only use domestic loans of IDR 5.17 trillion.

As for foreign loans, the government will withdraw foreign loans (gross) worth IDR 216.49 trillion, of which around IDR 88.36 trillion will be used to pay principal installments of foreign loans.

Thus, the government will only use a net loan budget of IDR 128.13 trillion which will be allocated for domestic expenditure purposes.

Of the total foreign loans, which amounted to IDR 80 trillion for cash loans, and IDR 125.52 trillion for central ministries/agencies (K/L) activities.

In addition, around Rp. 1.59 trillion will be used for activities to be donated, and Rp. 9.3 trillion for lending activities to State-Owned Enterprises (BUMN) and Regional Governments (Pemda).