Indonesia's 2018 Government Debt Reached Rp 4.418 Trillion

Indonesia's 2018 central government debt realization reached Rp 4,418.3 trillion, a 10.59% increase from the previous year. According to the Ministry of Finance, this figure comprises Rp 805.62 trillion in loans and Rp 3,612.19 trillion in State Bonds. For this year, the government targets Rp 359.25 trillion in APBN (State Budget) financing.

Meanwhile, Indonesia's 2018 Gross Domestic Product (GDP) reached Rp 14,735.85 trillion, growing by 8.44% from the previous year's Rp 13,588.85 trillion. As a result, the government debt-to-GDP ratio in 2018 was 29.98%, lower than other ASEAN countries such as Malaysia (50.9%), Thailand (41.8%), and the Philippines (42.1%). Indonesia's debt ratio was also lower than Brazil (74%), India (68.7%), and South Africa (53.1%). This year's national GDP (according to IMF estimates) is projected to reach US$ 1.066 trillion, or approximately Rp 16,000 trillion.

Therefore, although Indonesia's government debt shows an increase, it remains manageable due to the continuous growth of the domestic GDP, as shown in the graph below, enabling the government to remain solvent. Furthermore, current government debt is managed more cautiously and utilized for productive sectors such as infrastructure development.