Government Debt Reaches Rp7.879 Trillion at the End of March 2023: Here's the Breakdown

The Ministry of Finance (Kemenkeu) reported that Indonesia's government debt reached Rp7,879.07 trillion as of March 31, 2023. With this amount, the debt-to-Gross Domestic Product (GDP) ratio reached 39.17%.

"Based on the debt limit in Law Number 17 of 2003 concerning State Finance, which is 60 percent of GDP, government debt is within safe and controlled limits," stated Kemenkeu in the April 2023 edition of the APBN KiTA book, as quoted on Tuesday (May 9, 2023).

Kemenkeu mentioned that the government consistently manages debt cautiously with controlled risks through optimal composition, including currency, interest rates, and maturity.

The value of government debt at the end of March 2023 increased by Rp17.39 trillion from the end of February 2023, which was Rp7,861.68 trillion, with a ratio of 39.09% to GDP. Similarly, compared to the end of March 2022, the value increased by Rp826.57 trillion from Rp7,052.5 trillion, with a ratio of 40.39% to GDP.

Government debt is divided into two types: bonds or state securities (SBN), plus loans from domestic and foreign sources.

SBN instruments still dominate government debt, reaching 89.02% with a value of Rp7,013.58 trillion at the end of March 2023.

Domestic SBN debt in March 2023 was recorded at Rp5,658.77 trillion. Meanwhile, foreign currency (forex) SBN debt amounted to Rp1,354.81 trillion.

Government debt in the form of loans at the end of March 2023 reached Rp865.48 trillion. Loans primarily originated from foreign sources, amounting to Rp844.17 trillion, consisting of multilateral, bilateral, and commercial bank loans. Meanwhile, domestic loans amounted to Rp21.31 trillion.