Government Debt Reaches Rp7,163.12 Trillion in July 2022

Government debt in Indonesia increased again in July 2022. The Ministry of Finance recorded government debt at Rp7,163.12 trillion (approximately US$477.5 billion based on the exchange rate at the time of writing).

This figure is higher than the debt position at the end of June 2022, which stood at Rp7,123.62 trillion. However, the government debt-to-Gross Domestic Product (GDP) ratio decreased to 37.91%, down from 39.56% at the end of June 2022.

"The debt-to-GDP ratio is within safe, reasonable, and controlled limits, accompanied by optimal portfolio diversification," according to the August edition of APBN KITA (Indonesia's State Budget), released on Monday, August 22nd.

A detailed breakdown shows that government debt is dominated by State Bonds (Surat Berharga Negara or SBN), contributing 88.50%. As of the end of July 2022, SBN issuance totaled Rp6,339.64 trillion.

This SBN issuance is divided into domestic SBN and foreign currency (valas) SBN. Domestic SBN totaled Rp5,033.99 trillion, comprising Rp4,121.43 trillion in Government Bonds (SUN) and Rp912.56 trillion in Syariah State Bonds (SBSN).

Foreign currency SBN totaled Rp1,305.65 trillion, consisting of Rp978.73 trillion in SUN and Rp326.92 trillion in SBSN.

Government debt also includes loans, contributing Rp823.48 trillion or 11.5% of the total government debt in July 2022. This comprises Rp15.65 trillion in domestic loans and Rp807.82 trillion in foreign loans.

Foreign loans consist of Rp271.72 trillion in bilateral loans, Rp493.02 trillion in multilateral loans, and Rp43.08 trillion in commercial bank loans.

(See also: Government Debt Payments Cause Decrease in Indonesia's Foreign Exchange Reserves in July 2022)