Finance Ministry: Govt Incurring Debts for People`s Welfare

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  • Finance Minister, Sri Mulyani Indrawati. AP

    Finance Minister, Sri Mulyani Indrawati. AP

    TEMPO.CO, Jakarta - Finance Ministry`s financing and risk management office director Schneider Siahaan said that the state debts are mainly used for the welfare of the people. 

    “We collectively accept this as a consequence upon advancing the society,” said Siahaan at the Finance Ministry’s office on Tuesday, August 21. 

    Schneider Siahaan explained that every president that leads the country has their own focus in improving the country. And he sees that the current administration under President Joko “Jokowi” Widodo is focused on matters involving infrastructure, healthcare, and human resources investment. 

    In order to develop those elements, he maintained, take on debts will be conducted if the state income is not able to fulfill the country’s expenses. “That is the consideration overcoming a budget deficit,” said Schneider who maintained that Indonesia will be able to pay its debts.

    Previously, Finance Minister Sri Mulyani Indrawati stated that the government will face a steep challenge in managing its budget following a significant amount of debt due. The debt that Indonesia must pay amounts to Rp409 trillion in 2019.

    Sri Mulyani said that the budget deficit will be covered by budget funds sources that will refer to a policy that will be able to control the GDP and debt ratio to be within a safe amount.