TEMPO.CO, Jakarta - Indonesian Minister of Finance Sri Mulyani Indrawati revealed the realization of financing through the issuance of new debt amounted to Rp243.9 trillion.

Until April 30, 2023, she explained that the realization of budget financing had reached Rp223.9 trillion. The financing through debt hit Rp243.9 trillion or 35 percent of the state budget.

“This has indeed increased from last year, mainly due to anticipation of a surge in the Fed Fund Rate and domestic interest rates,” Sri said in a press conference on the state budget held virtually on Monday, May 22, 2023.

Sri elaborated that the debt of Rp243.9 trillion consists of the issuance of Government Bonds (SBN) worth Rp240 trillion and loans of Rp3.9 trillion.

For SBN, the amount is equal to 33.7 percent of the state budget, up 68.8 percent year on year (yoy). As for loans, the amount is 72.7 percent lower compared to last year’s Rp14.2 trillion.

“We anticipate that with a large enough revenue, we can later reduce SBN issuance in line with our fairly good financial condition in the first quarter,” said the state treasurer.

Jusuf Kalla or JK, former Vice President, said on the 21st anniversary of the Prosperous Justice Party (PKS) at Istora Senayan, Central Jakarta, on May 20, 2023, that the current enormous debt is a combination of the debts from the previous and the current government.

However, he stressed that the debt under President Jokowi's leadership is the largest. “Paying off debt for one year and the interest hits up to a thousand trillion. This is the biggest in Indonesia's history since independence,” said Jusuf Kalla, who is also the chairman of the Indonesian Mosques Council (DMI).

AMELIA RAHIMA SARI | MOH KHORY ALFARIZI

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