"The amount of Indonesian debts almost reached Rp3,200 trillion, or some 26.8 percent of the GDP, at the end of March 2016," Director General for Financial and Risk Management of the Ministry of Finance Robert Pakpahan stated on Thursday.
Pakpahan explained that Indonesias debt increased nominally every year as the government adopted a deficit policy system in the management of its state budget expenditure.
However, he made assurance that all the debts were well managed. Financing from debt sources is useful for advancing the nations development performance.
"We are still able to repay the debts. Moreover, the average maturity period of our bonds is some 9.29 years. This is relatively safe, and we still have adequate capability to repay the debts," noted Robert.
He explained that the debts from external loans or the government debt papers (SBN) were being used to finance productive sectors, such as social and physical infrastructure development.
Data from the directorate general revealed that until the end of March 2016, the amount of central government debts totaled Rp3,271.82 trillion, comprising Rp750.16 trillion external debts and Rp2,521 trillion SBN.
The realization of financing from loans and the issuance of SBN until early April 2016 has reached Rp300 trillion, or some 55 percent of the target set at Rp556 trillion.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
