Although Indonesia's Debt Is Mounting, La Nyalla: We Must Always Be Optimistic

Even though Indonesia's debt continues to grow, according to La Nyalla, we must always be optimistic. (Special Photo)

JAKARTA - Indonesia's debt burden is quite large. However, the Chairman of the DPD RI, AA La Nyalla Mahmud Mattalitti, invites all levels of society to continue to be optimistic and think positively.

Indonesia's debt currently reaches IDR 8,670.66 trillion, consisting of government debt of IDR 6,527 trillion at the end of April 2020 and SOE debt which reached IDR 2,24,37 trillion as of the fourth quarter of 2020.

"It is undeniable that Indonesia has faced difficult times since the COVID-19 outbreak hit. Like other countries, Indonesia must feel the slump in the economic and health sectors. In fact, the condition could even get worse," said La Nyalla in a press release received by the editors on Sunday 27 June .

The senator from East Java added that this condition forced Indonesia to face a phase where the country's debt was very high. According to him, many people are worried that the high debt could lead to instability in other problems, such as social and political issues.

"Indeed, this condition could set a bad precedent throughout this year. However, we must remain optimistic that we can get out of this problem. The government is boosting the investment climate and growing the industry. So, we still have high hopes through the national economic recovery program," he said.

La Nyalla also hopes that these efforts can be supported by local governments by innovating the development of potential economic resources. According to him, the central and regional governments must work together and work together.

"Innovation is urgently needed, both at the central and regional levels. Because the government needs to find a solution to solve the budget deficit, and we must try to do it without burdening the community," he said.

According to La Nyalla, current state revenue is IDR 726 trillion as of May 2021, while state spending reaches IDR 945, so we have a state budget deficit of IDR 219 trillion at the end of May 2021. Meanwhile, Indonesia's government debt is IDR 6,418.15 trillion or equivalent to 40.49 percent. of Gross Domestic Product (GDP) as of the end of May 2021.