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Government Debt Increases by Rp34 Trillion

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21 July 2017 16:50 WIB

Finance Minister Sri Mulyani Indrawati (right) and House of Representatives' Budgetary Board chairman Said Abdullah (left). TEMPO/Dhemas Reviyanto

TEMPO.CO, Jakarta - Finance Ministry secretary general Hadiyanto said that Indonesia’s heightened debt will only be used for productive spendings, such as for improving the education and health sectors and developing public infrastructures. 

“Taking a debt is clearly done when expenses are larger than incomes, leading to a deficit financing. The decision [to take loans] has gone through careful planning,” Hadiyanto said on Friday, July 21.

Read: Bank Indonesia: Ratio Remains Safe despite Increasing Debt

Up until June 2017, the central government’s debt reached Rp3,706.52 trillion. The net debt increased by Rp34.19 trillion when compared to that in May. According to the Finance Ministry, the government’s debt reached Rp3,672.33 trillion in May.

The government’s debt consists of Rp2,979.50 trillion in the form of government securities (SBN) and a Rp727.02 trillion in the form of loans. 

Read: Govt to Increase Foreign Debts

According to the Robert Pakpahan, director general for budget financing and risk management, the amount of debt throughout 2017 increases by Rp191.06 trillion, consisting of Rp198.8 trillion worth of SBNs, and Rp7.83 trillion debt repayment.

ANGELINA ANJAR SAWITRI



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