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Future president faces state debt problem, says former VP Jusuf Kalla

Tempo - April 18, 2022

Bisnis, Jakarta – Former Indonesian vice president Jusuf Kalla on Sunday, April 17, revealed the challenge faced by any presidential candidate for the 2024 presidential election. According to the VP under two past presidential terms, those who will replace current President Joko "Jokowi" Widodo must be able to pay off the government's debt amounting to trillions of rupiah.

"I say that the upcoming president must have the major ability and resilience to face upcoming challenges, one of them is in the economic aspect as this is not yet in a good state," said the former VP at his house, Bisnis.com reported on April 17.

Kalla, who leads the Indonesia Mosque Council (DMI), said the government's debt increased during the Covid-19 pandemic after the Finance Ministry reported the country's debt at the level Rp7,014.58 trillion until the end of February 2022. The government debt to GDP ratio reaches 40.17 percent.

Debt increased exponentially within one month as of January 31 logged Rp6,919.15 trillion but grew Rp95.43 trillion within just one month.

Based on the KiTa State Budget reports of March 2022, a total increase of debt aligns with state securities issuance and loan withdrawal in February 2022.

"Debt continues to rise. The interest rate itself on average is 6 percent because of obligations or 7-8 percent, which means the interest itself is RP400 trillion," said Jusuf Kalla, "The next leader must be able to solve all that."

Source: https://en.tempo.co/read/1583168/future-president-faces-state-debt-problem-says-former-vp-jusuf-kall