Indonesia's Debt Increases To IDR 5,515 Trillion By The End Of August

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The Ministry of Finance reports Indonesia's debt ratio as of the end of August 2020. There was an increase of around IDR 251 trillion or 1.57 percent compared to the first semester of IDR 5,264.07 trillion or 32.96 percent of gross domestic product (GDP).

Deputy Minister of Finance Suahasil Nazara said that the position of debt until the end of August was close to the government's target of 37.6 percent of GDP by the end of 2020.

"The debt-to-GDP ratio has the latest figures. As of August, it was 34.53 percent or IDR5,515 trillion," he said at a working meeting with Commission XI of the Indonesian Parliament in Jakarta, Monday, September 7.

It is known, until July 2020, the debt ratio was recorded at 33.63 percent of GDP. This ratio came from July's debt which was recorded at IDR5,434.86 trillion. This debt increased by IDR 831.24 trillion compared to the same period in 2019 of IDR 4,603.62 trillion. Meanwhile, when compared to June 2020, this debt increased by Rp170.79 trillion.

In detail, July's debt originated from SBN, which was recorded at IDR 4,596.26 trillion. Consisting of Domestic SBN IDR 3,351.13 trillion and Foreign Currency IDR IDR 1,245.13 trillion.

Meanwhile, debt from loans was recorded at Rp. 838.60 trillion, consisting of Rp. 10.53 trillion in domestic loans and Rp. 828.07 trillion from foreign loans.

Based on Law Number 17 of 2013 concerning State Finances, Indonesia's debt ratio is still safe if it is below 60 percent.

Meanwhile, Suahasil explained that the ratio of the primary balance to gross domestic product (GDP) in the first semester was negative at IDR100.18 trillion.

"So that the ratio of the primary balance to GDP until June reaches minus 0.61 percent," he said.