Foreign Loan Installment Is Bigger Than Domestic: IDR 7.5 Trillion Compared To IDR 200 Billion

Illustration (Photo: Doc. Antara)

The Ministry of Finance (Kemenkeu) revealed that in February 2023 the principal installment payment value for foreign loans was IDR 7.5 trillion.

This figure is much greater when compared to the payment of principal installments for domestic loans amounting to Rp200 billion.

"The government always strives for prudent and sustainable debt financing management with controlled risk at a safe and credible level," said the Ministry of Finance in the latest realization of the 2023 State Budget, quoted by the editorial staff on Sunday, March 19.

Meanwhile, last month's withdrawal of foreign loans amounted to IDR 16.91 trillion while the realization of loans consisted of domestic loans amounting to IDR 20 billion

Meanwhile, as of February 2023, the government's debt position was at IDR 7,861.68 trillion with a gross domestic product (GDP) ratio of 39.09 percent.

"Finishing the state budget financing needs during February 2023 has been successfully carried out," said the Ministry of Finance's minutes.

The government stated that the debt position was still safe as well as being shown by the dominance of the composition of domestic debt (in rupiah currency), which was 71.50 percent.

"This is in line with the general policy of debt financing, namely optimizing domestic financing sources and utilizing foreign debt as a complement to maintaining the risk of exchange rates," explained the agency led by Sri Mulyani.

"The government always manages debt carefully with controlled risks through optimal composition, both related to currency, interest rates, and due," said the Ministry of Finance.