Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati said the realization of debt financing in 2020 reached Rp1,226.8 trillion, a growth of 180.4 percent compared to the year-ago period, when it was recorded at Rp437.5 trillion.

The realization met 100.5 percent of the target of Rp1,220.5 trillion set under the Presidential Decree 72/2020, and was increased for handling the impact of the COVID-19 pandemic and bringing about national economic recovery (PEN), she explained.

"For debt financing of Rp1,226.8 trillion, this reaches 100.5 percent of the Presidential Decree 72/2020 target," she said at the KiTa State Budget press conference in Jakarta on Wednesday.

Sri Mulyani explained that debt financing grew as a result of the very high increase in net government securities (SBN) issuance, which reached Rp1,177.2 trillion, an increase of 163.8 percent compared to the same period of 2019, when the figure stood at Rp446.3 trillion.

The realization of the net SBN issuance reached 100.3 percent of the target of Rp1,173.7 trillion set under the Presidential Decree 72/2020, Sri Mulyani informed.

Meanwhile, loans shrunk 667 percent compared to 2019 to reach Rp49.7 trillion, and were recorded at 106.3 percent of the target of Rp46.7 trillion set under the Presidential Decree 72/2020.

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In investment financing, Rp104.7 trillion was realized, or just 40.7 percent of the target of Rp257.1 trillion set under the Presidential Decree 72/2020.

Investment financing showed an increase of 112.1 percent compared to the same period of 2019, when the figure was recorded at Rp49.4 trillion.

Sri Mulyani informed that investment in state-owned enterprises (BUMN) reached Rp31.3 trillion, public service agencies (BLU) Rp31.3 trillion, and other institutions or bodies Rp25 trillion.

Furthermore, the provision of loans amounted to Rp1.5 trillion, Rp3.6 trillion was recorded in guarantee obligations, and Rp70.9 trillion in other financing.

Sri Mulyani assured that debt financing will continue to be implemented in a prudent, flexible, and scalable manner by optimizing the most efficient sources of financing.

"Investment financing is aimed at supporting MSMEs, business world corporations, and human resource development," she remarked.

Thus, based on these details, the realization of budget financing for 2020 reached Rp1,190.9 trillion, or an increase of 196 percent from Rp402.1 trillion recorded in 2019, she explained.

Sri Mulyani also said that Indonesia's debt ratio of 38 percent, with a deficit of 6.34 percent, is still better than other countries such as the United States (US) and France, where it has reached more than 100 percent, and Germany, China, and India, where it has been recorded above 60 percent.

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Translator: Astrid Habibah, Azis Kurmala
Editor: Rahmad Nasution
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