President Jokowi Emphasizes That The State Debt Ratio Is Still Good In Accordance With The Law

Mendes PDTT Abdul Halim Iskandar (right) accompanied President Joko Widodo during a working visit to Margagiri Village, Bojonegara District, Serang Regency, Banten, Monday (8/1/2023). BETWEEN/HO-Kemendes PDTT

JAKARTA - President Joko Widodo emphasized that the current ratio of state debt is still in good condition and does not violate the provisions of laws that are allowed up to 60 percent of gross domestic product (GDP).

"The law allows up to a maximum of 60 percent, and we must also see that our debt compared to gross domestic product (GDP) is still in good condition and safe, still below 40 percent," said President Jokowi on the sidelines of a working visit. in Serang, Banten reported by ANTARA, Monday, January 8.

Joko Widodo emphasized that the administration of government and the life of the nation and state all refers to the law.

The current debt to GDP ratio, according to the President, is still in the corridor of the provisions of the law.

"Remember that in big countries there are already 260 percent, some 220 percent. Some are in our neighbors, I don't call them countries, 120 percent, some are 66 percent," said Jokowi.

Jokowi assessed that the most important thing is that debt must be used for productive interests that can provide benefits back to the state so that they can pay it.

"With the increase in our GDP from year to year, period to period, I think that's the most important thing," he said.

In the third debate of the 2024 presidential election in Jakarta, on Sunday (7/1) night, the presidential candidate Anies Baswedan questioned the ideal percentage standard related to the comparison of foreign debt to Indonesia's GDP.

"We are in Indonesia, if we are among the best in what number? In our opinion, we must reach a maximum figure of 30 percent of GDP so that we are safe below 30 percent," said Anies.

Prabowo Subianto's presidential candidate questioned Anies Baswedan's statement.

Prabowo explained that Saudi Arabia and Russia do have a lower ratio of foreign debt to GDP than Indonesia. This is also inseparable from the tremendous wealth factors of natural resources in the two countries.

"Under us, Saudi Arabia, Russia is a country that has extraordinary natural resources, but 40 percent (the debt ratio to Indonesia's GDP) is one of the lowest in the world today," said Prabowo.