Currently, Indonesia is experiencing a demographic bonus, which needs to be supported in the best possible way, he said.
"We have to ensure that the young generation grows optimally, hence good medical support and high allocation for education are necessary," Ridwan said at CNBC - MoneyTalks on Location here on Wednesday.
Moreover, the state needs infrastructure in order to support its citizens. He said that such infrastructure includes clean water, Internet connection, and electricity.
Other needs include subsidies for energy to tackle events like the global oil price spike of 2022, he noted.
Prior to the crisis, the government had allocated Rp152.5 trillion (US$10.2 billion) for the subsidy, and then increased it to Rp502.4 trillion (US$33.7 billion) while also making some adjustments, Ridwan explained.
One such adjustment involved bringing down the price of fuel oil in order to ensure that prices of other things do not bloat as well, he said.
The initiative demonstrates the government's effort to manage debt as well as possible, he added.
"Indonesia can be free from debt as long as subsidy is removed. On paper, it (looks) possible, but in practice, it is (something else)," he said.
He pointed out that the government's debt in 2023 has been the highest since Indonesia gained independence in 1945.
As of April 2023, the debt reached Rp7,849.89 trillion (US$527 billion), a decline of Rp28.19 trillion (US$1.9 billion) from Rp7,879.07 trillion (US$529 billion), he noted.
He informed that state debt will always increase as cabinets or leaderships change; however, the current national gross domestic product (GDP) is also at its highest since independence.
The ratio of government debt to the GDP has been recorded at 38.15 percent, which is still safe, as it is below the threshold of government debt outlined in Law Number 17 or 2003 about State Finance, which pegs the maximum ratio of debt at 60 percent of the GDP, he underlined.
The figure shows that the increase in national debt has also been followed by better capability to repay the debt, he added.
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Translator: Imamatul Silfia, Mecca Yumna
Editor: Sri Haryati
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