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Government debt rises to Rp 8,250 trillion: Finance ministry

Jakarta Globe - February 27, 2024

Arnoldus Kristianus, Jakarta – As of January 2024, the Finance Ministry has recorded the Indonesian government's debt at Rp 8,253.09 trillion ($528 billion), constituting 38.75 percent of the gross domestic product (GDP), below the stipulated safe limit.

The debt saw a rise of 1.33 percent from the Rp 8.144,69 trillion recorded in December 2023. The government's debt structure primarily comprises of government bonds (SBN), totaling Rp 7,278.03 trillion (88.19 percent), and loans amounting to Rp 975.06 trillion (11.81 percent).

With a debt-to-GDP ratio of 38.75 percent, Indonesia remains comfortably below the safe limit of 60 percent, as mandated by the Law on State Finance. Additionally, this ratio is under the target outlined in the Medium-Term Debt Management Strategy 2024-2027, aiming for around 40 percent.

"The government consistently manages debt carefully and prudently, mitigating risks related to interest rates, currency, liquidity, and optimal maturity," Finance Minister Sri Mulyani said at a press conference on Monday.

The composition of SBN consists of domestic bonds at Rp 5,873.38 trillion (71.17 percent) and foreign-denominated bonds at Rp 1,404.65 trillion (17.02 percent).

Simultaneously, loans totaling Rp 975.06 trillion are categorized into domestic loans at Rp 36.23 trillion and foreign loans at Rp 938.83 trillion.

According to the Finance Ministry's statement, Indonesia's disciplined approach to debt management contributes significantly to maintaining the country's sovereign ratings at investment grade, as affirmed by credit rating agencies such as S&P, Fitch, and Moody's.

Source: https://jakartaglobe.id/business/government-debt-rises-to-rp-8250-trillion-finance-ministr