Government Debt Reaches Rp7,000 Trillion by February 2022

The Ministry of Finance (Kemenkeu) reported that the government's debt position as of February 2022 reached Rp7,014.58 trillion, with a debt-to-Gross Domestic Product (GDP) ratio of 40.17%.

The government's debt position in February 2022 increased by 1.4% compared to the previous month, which amounted to Rp6,919.15 trillion.

Year-on-year, government debt also increased by 10.3% compared to February 2021, which amounted to Rp6,361.02 trillion.

Government debt in February 2022 was still dominated by State Bonds (SBN) amounting to Rp6,164.20 trillion (87.9%), consisting of domestic SBN Rp4,901.66 trillion and foreign currency SBN Rp1,262.53 trillion.

The government also has debt in the form of loans amounting to Rp850.38 trillion (12.1%), consisting of domestic loans Rp13.27 trillion and foreign loans Rp837.11 trillion.

Further detailed, foreign loans consist of bilateral loans Rp294.36 trillion, multilateral loans Rp499.09 trillion, and commercial bank loans Rp43.66 trillion.

With this debt increase, the government projects that economic recovery will continue.

"Although still shrouded in uncertainty, economic recovery in 2022 is expected to continue. The decreasing 2022 State Budget deficit compared to the deficit targets for 2020 and 2021 shows the government's efforts to gradually return to a deficit below 3% of GDP," as quoted from the *APBN Kita* report, March 2022 edition.

The government stated that it will continue to maintain the debt ratio by prioritizing the use of non-debt financing, such as optimizing the use of Budget Surplus (SAL) as a fiscal buffer, and implementing the III Joint Decree with Bank Indonesia.

The government also stated that it will implement creative and innovative financing for infrastructure financing, prioritizing cooperation based on the concept of fair risk sharing.

(See Also: Indonesia's Green Bonds Reach US$6.3 Billion, Mostly Owned by the Government)