Government Debt Increased by 2.9% in December 2021

The Ministry of Finance (Kemenkeu) reported that the government's debt position at the end of December, as stated in the 2021 State Budget (APBN) report, reached Rp 6,908.87 trillion. This debt increased by 2.9% from Rp 6,713.24 trillion the previous month.

Kemenkeu noted that, assuming a 2021 Gross Domestic Product (GDP) of Rp 16,850.20 trillion, the government's debt-to-GDP ratio as of December 2021 was 41%.

In detail, government debt from state securities (SBN) reached Rp 6,090.31 trillion, or 88.15% of the total. This debt consisted of Rp 4,822.87 trillion in domestic SBN and Rp 1,267.44 trillion in foreign currency (valas) SBN.

Furthermore, government debt in the form of loans amounted to Rp 818.56 trillion, or 11.85%. Domestic loans accounted for Rp 13.25 trillion.

Meanwhile, foreign debt totaled Rp 805.31 trillion. This included Rp 296.14 trillion in bilateral loans, Rp 466.83 trillion in multilateral loans, and Rp 42.34 trillion in commercial bank loans.

Kemenkeu explained that the composition of government debt remained manageable amidst the Covid-19 pandemic. Government debt, if managed well, can accelerate development and improve people's welfare; however, mismanagement could jeopardize the sustainability of the government budget.

Therefore, the government formulated financing strategies through the Medium-Term Debt Financing Strategy (SPUJM) and the Annual Debt Financing Strategy (SPT). In general, the government remains committed to implementing a prudent, flexible, and opportunistic debt management strategy to achieve more efficient APBN financing with controlled risks.

(read: Government Debt Reaches Rp 6,713.24 Trillion in November 2021)