Government Debt Falls to Rp6.418 Trillion in May 2021

The Ministry of Finance recorded government debt at Rp 6,418.15 trillion by May 2021. This total government debt in the fifth month of the year equates to 40.49% of the Gross Domestic Product (GDP).

This percentage is lower than the previous month's 41.18%. Furthermore, government debt remains within safe limits, below 60% of GDP.

Government debt is dominated by state securities (SBN), reaching Rp 5,580.02 trillion. This comprises Rp 4,353.56 trillion in domestic SBN and Rp 1,226.45 trillion in foreign currency-denominated SBN. Each SBN category includes government bonds and state sharia securities.

Government debt also includes loans totaling Rp 838.13 trillion. These loans consist of Rp 825.81 trillion from foreign sources – bilateral, multilateral, and commercial banks – and Rp 12.32 trillion from domestic sources.

According to the Ministry of Finance, government debt is necessary as a source of funding for economic recovery following the Covid-19 pandemic. State revenue has been suppressed due to the national economic slowdown, while state expenditure has increased to manage the pandemic.