Primary Balance Deficit Rises to Rp 642.2 Trillion in 2020
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Indonesia's primary balance deficit ballooned by 778.5%, from Rp 73.1 trillion to Rp 642.2 trillion in 2020. However, this was still below the target allocated in Presidential Regulation No. 72 of 2020, which was 91.7% of the Rp 700.4 trillion budget.
Quoting the DPR website, the primary balance is the difference between total state revenue minus state expenditure excluding interest payments on debt. A surplus indicates that state revenue exceeds expenditure excluding interest payments on debt, thus providing funds to service debt interest.
However, a deficit means there are no funds available, so some or all of the debt interest is paid by incurring new debt.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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