Sri Mulyani Confirms Will Withdraw IDR 584 Trillion Debt In Semester II 2021

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Ministry of Finance reports that debt financing in the second semester of 2021 will reach a value of IDR 584 trillion. This amount is greater than the realization of debt financing in the first semester of IDR 443 trillion.

Minister of Finance, Sri Mulyani, said that the outlook for the second semester and the realization in the first half of this year made the estimated debt financing to be IDR 1,027 trillion. This figure is less than the initial plan in the 2021 State Budget which amounted to IDR1.1774 trillion.

"Debt financing in 2021 is estimated to decrease by IDR 150.4 trillion or 12.8 percent of the 2021 APBN ceiling, mainly because the APBN deficit is estimated to be lower and the use of additional SAL (excess budget balance) for other financings", he said during a Meeting Work with House of Representatives Commission XI which was broadcast virtual, Monday, August 23.

To note, in the 2021 State Budget it is stated that this year's state revenue is estimated at IDR 1,743.6 trillion. Meanwhile, state spending is believed to have touched IDR 2,750 trillion. This means that the budget deficit will be at IDR 1,006,4 trillion.

Previously, Senior Economist, Faisal Basri, reminded the government that the current mounting debt piles are very likely to bring Indonesia into a middle-income trap situation.

According to him, if this condition is not immediately found a comprehensive solution, then the goal of becoming a developed country will be difficult to achieve.

"What we need is a complete transformation, otherwise Indonesia will be caught in the trap of middle-income countries", he said in a written statement as quoted on Friday, August 20.

To note, Bank Indonesia reported that Indonesia's external debt (ULN) at the end of the second quarter of 2021 was US$415.1 billion or equivalent to IDR 5,975.2 trillion (exchange rate of IDR 14,387).

This figure consists of government external debt of 205.0 billion US dollars and private external debt of 207.2 billion US dollars.

This amount has not yet been added to the value of domestic government debt which is distributed through various financing instruments.