DIGIVESTASI - The Ministry of Finance (MoF) noted that President-Elect Prabowo Subianto plans to attract IDR775 trillion in debt by 2025. Director of Financing Strategy and Portfolio at the Ministry's Directorate General of Financing and Risk Management, Riko Amir, said that the majority of this financing will come from the issuance of Government Securities (SBN).

“The issuance of SBN reached Rp642.5 trillion, while the withdrawal of loans amounted to Rp133 trillion,” said Riko at a media gathering in Serang, Banten, on Thursday (26/9).

Riko added that the loans came from domestic and foreign sources. Domestic loans amounted to Rp5.2 trillion, while foreign loans reached Rp128.1 trillion.

He also explained that an increase in loans, both domestic and foreign, often occurs at the end of a five-year period.

“This phenomenon is quite interesting, especially because the volume of loans, both domestic and international, tends to be higher than the 2024 State Budget on a net basis. One of the reasons is that this is the last year of the 2020-2024 period,” he explained.

In Book II of the Financial Memorandum of the 2025 Draft State Budget, it is stated that debt financing management aims to support the acceleration of inclusive and sustainable economic transformation, with a focus on innovative, prudent, and sustainable financing.

The government also states that debt withdrawal aims to meet the financing needs of the state budget, taking into account the balance between minimal costs and acceptable risks.

“In addition to financing the state budget, debt management is also directed to support the development of the domestic financial market,” reads Book II of the Financial Memorandum of the 2025 Draft State Budget.

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