Government Debt Reaches Rp6,919.15 Trillion in January 2022

The Ministry of Finance (Kemenkeu) reported that the government's debt position at the end of January 2022 reached Rp6,919.15 trillion, equivalent to 39.63% of the Gross Domestic Product (GDP).

According to Kemenkeu's records, the total government debt in January 2022 nominally increased compared to December 2021, which amounted to Rp6,908.87 trillion.

This increase occurred in line with the issuance of state securities (SBN) and loan withdrawals in January 2022 to cover the financing of the State Budget (APBN).

However, the debt-to-GDP ratio decreased compared to the end of December 2021, which was 41%. This decrease in the debt ratio is in line with the strong economic recovery.

Largest Debt from Domestic SBN

By type, government debt is dominated by SBN instruments, reaching Rp6,081.68 trillion or 87.90% of the entire debt composition at the end of January 2022.

This debt consists of domestic SBN (Rupiah currency) amounting to Rp4,818.84 trillion and foreign currency (forex) SBN amounting to Rp1,262.84 trillion.

Then, government debt in the form of loans amounted to Rp837.46 trillion or 12.1% of its total debt. The details are domestic loans of Rp13.47 trillion and foreign loans of Rp823.99 trillion.

Foreign debt includes bilateral loans of Rp293.89 trillion, multilateral loans of Rp486.51 trillion, and commercial bank loans of Rp43.58 trillion.

Kemenkeu: Indonesian Debt Remains Safe and Reasonable

Kemenkeu assessed that the government's debt position in January 2022 remained within safe and reasonable limits and was under control.

The government also estimates that the economic recovery in 2022 will continue, and the 2022 APBN deficit will continue to be reduced towards a deficit of below 3% of GDP gradually.

Along with this, the Government stated that it will continue to maintain the debt ratio, especially by prioritizing the use of non-debt financing, such as optimizing the utilization of excess budget balances (SAL) as a fiscal buffer, and implementing SKB III with Bank Indonesia (BI).

Other efforts made by the government include optimizing creative and innovative financing for infrastructure financing by prioritizing cooperation (partnership) based on the concept of fair risk sharing.

(See Also: Indonesia's Foreign Debt Decreased at the End of 2021)