Government debt has once again increased in September 2023. This increase is followed by the growth of the government's debt-to-gross domestic product (GDP) ratio.

The Ministry of Finance (MoF), in the October 2023 edition of the State Budget (APBN) document, reported that the government's debt position by the end of September reached IDR 7,891.61 trillion.

Compared to the previous month, the government's debt has increased by approximately IDR 21.26 trillion. As of the end of August, the government's debt stood at IDR 7,870.35 trillion.

With this level of debt, the government's debt-to-GDP ratio reached 37.95% in September. This ratio is also slightly higher compared to the position in August, which was 37.84%.

"The debt ratio has decreased compared to the end of 2022 and remains below the safe limit of 60% of GDP, as stipulated by Law Number 17 of 2003 on State Finance," as stated by the MoF in the October 2023 APBN document, as quoted on Sunday (29/10/2023).

The ministry, under the leadership of Sri Mulyani, also emphasizes that the debt ratio in September is still in line with the Medium-Term Debt Management Strategy for 2023-2026, which is around 40%.

Looking at the composition, the majority of government debt is dominated by Government Securities (SBN). The total value of issued SBNs has reached IDR 7,012.76 trillion, equivalent to 88.86% of the total government debt. The SBN amount has increased from the previous month, which was IDR 6,995.18 trillion.

Meanwhile, the government's debt from loans reached IDR 878.85 trillion. The loan position has also increased from the previous month, which was IDR 875.17 trillion.

"The government always manages debt carefully with controlled risks through an optimal composition, including currency, interest rates, and maturity," as explained by the MoF.

In addition, the realization of debt financing in the 2023 fiscal year reached IDR 198.86 trillion. This amount is still below 28.6% of the government's target in the 2023 APBN, which is IDR 696.3 trillion.

Furthermore, debt financing realization is also lower compared to the position in September of the previous year. The realization of government debt financing recorded a decrease of 58.6% from September 2022, which was IDR 470.9 trillion.