Government debts reach Rp3,706 trillion as of June 2017

Jakarta (ANTARA News) - The Indonesian governments debts have reached Rp3,706.52 trillion as of June 2017, most of which has come from loans used to meet the target of economic and development growth in various sector, according to the Finance Ministry.

The debts resulted from the issuance of state securities worth Rp2,979.5 trillion and the signing of new loans worth Rp727.02 trillion, which accounted for 80.4 percent and 19.6 percent of the total debts, respectively, the ministrys directorate general of financing and risk management said in its website monitored on Tuesday.

The bet debts in June 2017 rose Rp34.19 trillion compared to the previous month, resulting from the issuance of state securities worth Rp35.77 trillion and the repayment of debts worth Rp1.59 trillion.

Cumulatively, the net debts in the first half of 2017 reached Rp191.6 trillion as a result of the issuance of state securities worth Rp198.89 trillion and the repayments of debts worth Rp7.83 trillion.

The increase in debts will likely raise productive spending in the fields of education, infrastructure, health, transfer to region and village fund, and social spending.

Moreover, the government has sustainable commitment when it comes to repaying debts as a consequence of the policy to finance a deficit in the state budget in the current and previous years.

Just in June 2017, debt repayments reached Rp26.89 trillion, comprising Rp18.91 trillion from the payment of matured debt principals worth Rp18.91 trillion, and the payment of interest worth Rp7.98 trillion.

The government has committed itself to manage debt risks properly, including refinancing risks, interest rate risk, and exchange rate risk.

The indicator of debt risks in June 2017 showed that the ratio of debts to variable rate has reached 11.2 percent of the total debts.

Meanwhile, Average Time to Maturity (ATM) was recorded at 8.9 years, with debts due in the next five years reaching 39.1 percent of the total outstanding debts.(*)