Friday, 20 September 2019

Indonesia`s Debt to GDP Ratio Lower than Other Countries: Govt

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  • Finance Minister, Sri Mulyani in a press conference after a meeting with President Joko Widodo at the state palace, Jakarta, March 13, 2017. TEMPO/Subekti

    Finance Minister, Sri Mulyani in a press conference after a meeting with President Joko Widodo at the state palace, Jakarta, March 13, 2017. TEMPO/Subekti

    TEMPO.CO, Jakarta - Finance Minister Sri Mulyani said that Indonesia`s debt to GDP ratio is lower than other countries. “Indonesia’s debt [to GDP] ratio is quite high. But not as high as other countries,” she said in South Tangerang on Monday, April 17, 2017.

    Sri Mulyani said that Indonesia’s debt to GDP ratio currently stands at 27 percent of the country’s GDP of Rp12,406 trillion. The figure equates to a debt per capita of US$997.

    Compared to other countries, Indonesia’s debt per capita is lower. For example, the United States’ debt per capita stands at US$62,000, whereas that of Japan is at US$85,000.

    Minister Sri added that Indonesia has more leverage thanks to its demographic bonus. The proportion of the country’s working people is high. Meanwhile, Japan has to pay off large debt with its aging population.

    Nevertheless, Sri Mulyani said that the government continues to push the debt to GDP ratio down to below 3 percent. Tax revenue increase, among others, is expected to contribute to such effort.

    VINDRY FLORENTIN