According to the document, the government has remained committed to maintaining a balance of costs and risks by diversifying its debt portfolio that includes types of debt instruments, interest rates, currencies, and tenors.
Jakarta (ANTARA) - The government has ensured that the management of debt stipulated in the 2022 state budget draft (RAPBN) of Rp973.6 trillion is conducted meticulously and always within the scope of fiscal sustainability.

"This debt management will also pay attention to fiscal vulnerabilities and risks," according to the 2022 Financial Memorandum and state budget draft document, as quoted here on Wednesday.

The document stated that the debt financing plan of Rp973.5 trillion is 5.2 percent lower as compared to the 2021 state budget outlook of Rp1,026.9 trillion.


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Most of the debt financing in the 2022 RAPBN will be fulfilled through the issuance of State Securities (SBN) that is estimated to reach Rp991.3 trillion, with priority to the rupiah currency, it stated.

The government, through the document, confirmed that debt financing requirements will be met pragmatically, opportunistically, flexibly, and prudently by looking at opportunities in financial markets.

The government also affirmed that debt is manageable and safe for long-term fiscal sustainability by maintaining a debt ceiling of 60 percent of the GDP, so that the fiscal debt discipline is preserved.

The document highlighted that currently, debt financing was not only used for covering the budget deficit but also for financing expenditure for investments, loans, and underwriting obligations.


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According to the document, the government has remained committed to maintaining a balance of costs and risks by diversifying its debt portfolio that includes types of debt instruments, interest rates, currencies, and tenors.

Earlier, debt financing in the 2020 state budget, originally planned at Rp351.8 trillion, had declined as compared to Rp437.5 trillion realized in 2019, according to the document.

The document noted that the realization demonstrated the government's commitment to controlling debt growth by making debt a tool for countercyclical policies.

As per the document, the government’s outstanding debts at the end of July 2021 had totalled Rp6,570.2 trillion comprising the issuance of State Securities of Rp5,727.7 trillion and loans of Rp842.5 trillion.

Meanwhile, the debt-to-GDP ratio at the end of July 2021 was recorded at 41 percent of the GDP along with increased financing for the handling of the COVID-19 pandemic, the document stated.


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Translator: Satyagraha, Kenzu T
Editor: Fardah Assegaf
Copyright © ANTARA 2021