DIGIVESTASI - Indonesia's Government Debt Rises to IDR 8,560.36 Trillion at the Start of Prabowo Subianto's Presidency, As of October 31, 2024, Indonesia's government debt stood at IDR 8,560.36 trillion, reflecting an increase of IDR 86.46 trillion compared to the previous month's figure of IDR 8,473.90 trillion. Alongside this, the debt-to-GDP ratio rose to 38.66% from 38.55%.

“The debt-to-GDP ratio as of the end of October 2024 was recorded at 38.66%, remaining well below the safe threshold of 60% as stipulated by Law No. 17 of 2003 on State Finances,” the Ministry of Finance stated in the APBN KiTA (State Budget Report), Thursday (November 28, 2024).

Composition of Government Debt

The government’s debt portfolio is divided into two main categories:

• Government Securities (SBN): Representing 88.21% of total debt.
• Loans: Accounting for 11.79%.

Government Securities Breakdown

• Total SBN: IDR 7,550.70 trillion, including:
  • Domestic SBN: IDR 6,606.68 trillion, comprising:
    • Government Bonds (Surat Utang Negara - SUN): IDR 5,104.38 trillion.
    • Sharia-Compliant Securities (Surat Berharga Syariah Negara - SBSN or Sukuk): IDR 1,502.30 trillion.
  • Foreign Currency SBN: IDR 944.02 trillion, comprising:
    • SUN: IDR 912.61 trillion.
    • SBSN: IDR 31.41 trillion.

Loan Breakdown

• Total Loans: IDR 1,009.66 trillion, consisting of:
  • Domestic Loans: IDR 42.25 trillion.
  • Foreign Loans: IDR 967.41 trillion.

Debt Management Focus

The Ministry of Finance emphasized that debt management is conducted prudently to maintain fiscal sustainability. “Debt portfolio management plays a crucial role in sustaining fiscal health. The government remains committed to managing debt carefully and strategically, mitigating risks related to interest rates, currency fluctuations, liquidity, and maturities,” the report stated.

Maturity Profile

The government's debt maturity profile remains stable, with an average time to maturity (ATM) of eight years, indicating a relatively secure debt position.

“The government prioritizes medium to long-term debt procurement and actively manages the portfolio,” the Ministry added.

This approach underscores the government’s efforts to ensure sustainable debt management while balancing fiscal responsibilities and economic development.

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