Government debts reach Rp3,779.98 trillion as of July 2017

Jakarta (ANTARA News) - The Indonesian governments debts have reached Rp3,779.98 trillion as of late July 2017 to achieve the countrys economic growth target, the Directorate General of Financing and Risk Management of the Finance Ministry said.

The debts that resulted from state securities were worth Rp3.045 trillion and those from new loans were worth Rp734.98 trillion, which accounted for 80.6 percent and 19.4 percent, respectively, of the total debts, the directorate general said in its official website monitored on Tuesday.

In July 2017, the amount of net debts rose Rp73.47 trillion, resulting from net state securities worth Rp65.50 trillion, and net new loans worth Rp7.96 trillion, it said.

The increase in net debts used to finance the 2017 state budget until late July 2017 reached Rp264.52 trillion, consisting of Rp264.39 trillion from state securities and Rp0.13 trillion from new loans.

The rise in debts was aimed at supporting an increase in productive budget for the education, infrastructure and health sectors, transfer of funds to regions, village funds, and social budget.

The government debts derived from loans are directed towards financing projects carried out by several ministries and non-ministerial government institutions.

As of July 2017, much of the loans are used to finance projects carried out by the Public Works and Peoples Housing Ministry, the Transportation Ministry, and the Defense Ministry, accounting for 66.43 percent of the total loans.

The government noted that it will always make an effort to manage debt risks as properly and prudentially as possible, including managing interest risks, exchange risks, and refinancing risks.(*)