State Debt Becomes The Spotlight Of PKS Faction DPR Members! Pay IDR 250 Trillion In Interest Every Year, Bigger Than Social Assistance

Illustration. (Photo: Doc. Antara)

JAKARTA - Member of Commission XI of the Indonesian House of Representatives from the Prosperous Justice Party (PKS) faction Anis Byarwati criticized the condition of government debt which he said had reached Rp 6,527 trillion as of April 2021, or 41.18 percent of the gross domestic product (GDP).

According to him, the condition is not completely safe. The reason is, the debt to GDP ratio jumped, from 30 percent to 41 percent, or an increase of more than 10 percent in the last 1 year. In fact, Anis noted that the current situation has been exacerbated by the primary balance deficit over the past few years.

"Indonesia's tax ratio for the last five years, which is far from optimal, even below 10 percent, is the cause of the wide gap in the budget deficit, thus exacerbating the condition of government debt," he said in a press statement as quoted by VOI on Thursday, June 3.

Anis added that when the state debt increases, the State Budget must bear the burden of large loan interest. Based on the data it has, every year more than Rp250 trillion of the APBN budget must be allocated only to pay debt interest.

"This figure is even far above the energy subsidy figure or social assistance," he said.

Anis, who also serves as deputy chairman of the DPR RI State Financial Accountability Agency (BAKN), assessed that the problem with the state debt started from budget planning and fiscal policies which were deemed inappropriate since 2014.

For example, he explained that the unrealistic growth target in the 2014-2019 National Medium-Term Development Plan (RPJMN) led to a high tax target, resulting in a tax shortfall.

"This is the beginning of uncontrolled government debt," he said.

The solution offered by Anis to the government is to try to reduce state expenditure financing.

"So that debt does not continue to rise, of course there must be efforts to reduce it," he added.

Anis hopes that the government will improve its planning and fiscal policy by maintaining fiscal policy and the state budget deficit.

"And its success cannot be separated from debt management professionally and always carried out prudently," he concluded.