DIGIVESTASI - The Indonesian government's debt maturing in 2025 is estimated to reach Rp 800.33 trillion next year. Finance Minister Sri Mulyani Indrawati asserts that this debt will not be a problem as long as the government remains stable.

In 2025, President-elect Prabowo Subianto and Vice President Gibran Rakabuming Raka will begin their administration. The amount of maturing debt was revealed during the discussion of the Macroeconomic Framework and Fiscal Policy Principles (KEM PPKF) in the 2025 State Budget Draft (RAPBN 2025).

Sri Mulyani emphasized that the risk from this maturing debt is relatively low if the country's financial stability is maintained.

"Maturing government debt is often a concern, but the risk the country faces is not in the amount but in the country's ability to revolve it at a reasonable cost," she said in a Working Meeting with Commission XI of the House of Representatives (DPR RI) on Thursday (6/6/2024).

"If the country remains credible, the state budget (APBN) is good, and the economic and political conditions are stable, then the risk of revolving is almost nonexistent because the market trusts that the country remains stable," she added.

Debt Details

The Rp 800.33 trillion in maturing debt that the Prabowo-Gibran administration will bear consists of Rp 705.5 trillion in Government Securities (SBN) and Rp 94.83 trillion in maturing loans.

Sri Mulyani reiterated that the high maturing debt in the coming years is not a problem as long as domestic conditions remain stable.

"So, the seemingly high maturity in 2025, 2026, and 2027 is not a problem if the perception of the state budget (APBN), fiscal policy, economy, and politics remains positive," said the Finance Minister.

Why is Indonesia's Debt High?

Sri Mulyani explained the reasons for the high maturing debt in the coming years. One reason is the spending burden during the Covid-19 pandemic, which reached nearly Rp 1,000 trillion, while state revenue fell by 19 percent.

"Our deficit was high at that time, and with the approval of Commission XI and the Governor of Bank Indonesia, we engaged in burden sharing using government bonds with a maximum maturity of 7 years," she revealed.

"So, if in 2020, the maximum maturity from the pandemic was 7 years, now the concentration of maturing debt is in the last 3 years, namely the 5th, 6th, and 7th years, and partly in the 8th year. This creates the perception of a lot of debt because it is the pandemic cost that is mostly financed through government bonds," explained the Finance Minister.

Find more news and articles on Google News