Government Debt Rises to Rp7,123.62 Trillion by the End of the First Half of 2022

The Ministry of Finance (Kemenkeu) reported that the government's debt position as of the first half of 2022 reached Rp7,123.63 trillion, equivalent to 39.56% of the Gross Domestic Product (GDP).

This debt increased by Rp121.39 trillion compared to the previous month, which was Rp7,002.24 trillion. Government debt also increased compared to June 2021, which stood at Rp6,554.56 trillion.

Government debt up to June 2022 was dominated by State Bonds (SBN) reaching Rp6,301.88 trillion or approximately 88.46%. Meanwhile, loans were recorded at Rp821.74 trillion or 11.54%.

Total SBN debt consisted of domestic SBN worth Rp4,992.52 trillion. This debt originated from State Treasury Bonds (SUN) of Rp4,092.03 trillion and State Sharia Securities (SBSN) of Rp900.48 trillion.

Foreign currency-denominated SBN reached Rp1,309.36 trillion, consisting of SUN Rp981.95 trillion and SBSN Rp327.40 trillion.

The government also has debt from domestic loans of Rp14.74 trillion and foreign loans of Rp806.31 trillion. Foreign loans consist of bilateral loans of Rp271.95 trillion, multilateral loans of Rp491.71 trillion, and commercial bank loans of Rp42.66 trillion.

According to Kemenkeu, the increase in debt largely occurred since 2020 due to the Covid-19 pandemic, which caused a health crisis, social crisis, and humanitarian crisis.

Nevertheless, Kemenkeu noted that the debt-to-GDP ratio remains within safe, reasonable, and manageable limits, accompanied by optimal portfolio diversification.

"In an effort to improve the state budget, the Government manages its debt portfolio optimally, so the increase in debt has been carefully calculated to achieve the most efficient risk and cost," quoted from the APBN Kita report, July 2022 edition, Monday (1/8/2022).

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