Government Debt Surpasses Rp8,500 Trillion, but Ratio Decreases

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Adi Ahdiat 19/08/2024 18:44 WIB

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According to the Ministry of Finance's report, the total value of government debt increased to Rp8,500 trillion at the end of July 2024. However, the debt-to-GDP ratio decreased.

Government Debt and Ratio to GDP (January-July 2024)

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Government Debt and Ratio to GDP (January-July 2024)

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According to a report from the Indonesian Ministry of Finance (Kemenkeu), Indonesia's total government debt reached Rp8,502.69 trillion (approximately Rp8.5 quadrillion) at the end of July 2024.

This represents an increase of Rp57.82 trillion, or 0.7%, compared to June 2024 (month-to-month).

Despite the nominal increase, the government's debt-to-Gross Domestic Product (GDP) ratio slightly decreased from 39.13% in June 2024 to 38.68% in July 2024.

"The debt ratio at the end of July 2024, at 38.68% of GDP, remains consistently below the safe limit of 60% of GDP as stipulated in Law Number 17/2003 on State Finance," the Kemenkeu report stated.

As of the end of July 2024, the majority of government debt originated domestically, accounting for 70.96%, while foreign debt constituted 29.04%.

Broken down by instrument, the majority of government debt comprised State Bonds (SBN) at 87.76%, with loans accounting for the remaining 12.24%.

According to Kemenkeu, as of the end of July 2024, the government's debt profile is considered safe, with an average time to maturity (ATM) of approximately 8 years.

Kemenkeu also claims that Indonesia's economic conditions are generally good.

"S&P reaffirmed Indonesia's credit rating at 'BBB' with a stable outlook at the end of July," Kemenkeu stated.

"Furthermore, Indonesia's government debt-to-GDP ratio remains relatively low compared to its peers at the investment grade level," it continued.

Editor : Adi Ahdiat

"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."