Sri Mulyani: Indonesia Debt to GDP Ratio Lower than Developed Nations

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati on Wednesday said the country’s debt ratio is relatively lower compared to the debt ratio of developed countries and other developing countries. She argued that the ratio was comparatively maintained due to the strict fiscal discipline that is imposed by Indonesia. 

“This is the position that Indonesia will maintain, a condition where risk has shifted from the threat of the pandemic paralyzing the economy into an economic threat and global finances, along with an energy and food crisis,” said Sri Mulyani during an APBN KiTA press conference on July 27.

IMF, as of April 2022, projected Indonesia’s debt ratio against GDP will be 42.71 percent, which is insignificant compared to developed countries such as the United States, Germany, France, Britain, Japan, and South Korea. 

Comparing Indonesia’s debt ratio to ASEAN countries such as Malaysia, Thailand, Philippines, and G20 peer countries such as Brazil, Mexico, China, and India, Indonesia remains to be lower. As cited from the IMF database in April 2022, the debt ratio of developed and developing countries is above Indonesia. 

It could be seen in the United States' debt ratio against the GDP which amounted to 125.58 percent; Japan with 262.54 percent; and Malaysia which logged a debt ratio of 69.25 percent. 

“With a relatively good export, import, and inflation, Indonesia’s condition is relatively better compared to peer countries,” said Sri Mulyani.

EKA YUDHA SAPUTRA 

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