Government`s debts reach Rp4,180 trillion

Government`s debts reach Rp4,180 trillion

Illustration. Officers set up a pile of US dollars at the Cash Center of Bank Mandiri, Jakarta.(ANTARA PHOTO/Sigid Kurniawan)

Jakarta (ANTARA News) - The government`s debts have reached Rp4,180 trillion, or 29.8 percent of the national gross domestic product (GDP), as of late April 2018, Director General of Financing and Risk Management of the Finance Ministry, Luky Alfirman, said.

"The debts account for 29.8 percent of the GDP," he stated here on Thursday.

Alfirman noted that the government`s debts result from state bonds, worth Rp3,407.14 trillion, and loans, worth Rp773.47 trillion.

He noted that the government has exercised caution in implementing the financing strategy through government debts by taking the costs, risks, and capacities into account.

The state bonds were also issued by observing the principles of prudence, cost efficiency, productivity, and balance, he remarked.

Meanwhile, debt financing in the 2018 state budget reached Rp187.16 trillion, making up 46.8 percent of the target of Rp399.22 trillion.

The financing has reached a half of the target, because it is part of the strategy of issuing state bonds in the beginning year (front loading) to anticipate global uncertainty, he added.

"We have upsized it since the beginning when the market was good to anticipate the global economic phenomenon," he explained.

The government`s loans, currently, also show signs of negative growth as Indonesia is no longer a low-income country, and so it can no longer receive loans with low interest.

Reported by Satyagraha