This was reflected in the realization of debt issuance in July 2023, which contracted 17.8 percent to Rp194.9 trillion from Rp237.0 trillion in the year-ago period.
"When compared to last year's debt financing, debt financing (this year) has decreased very sharply, by 17.8 percent," Indrawati informed at a press conference on the August 2023 edition of the APBN (state budget) KiTa, which was followed online from here on Friday.
Debt financing of Rp194.9 trillion indicates that realization until July reached just 28 percent of the State Budget (APBN) target of Rp696.3 trillion.
Based on the issuance of government securities (SBN), the realization until July reached Rp184.1 trillion or 25.8 percent of the State Budget target of Rp712.9 trillion.
Taking into account that state revenues and state spending were still well maintained at Rp1.6 trillion and Rp1.4 trillion respectively, Indonesia could reduce the issuance of SBNs by up to 17.8 percent, said the minister.
The state treasurer added that this performance led to credit rating agency Rating and Investment Information Inc. (R&I) upgrading Indonesia’s outlook to stable or positive.
In addition, R&I also maintained Indonesia's rating at BBB+, two levels above the lowest investment grade.
"This illustrates that the risk assessment of Indonesia's state budget and debt management is considered good, stable, even considered positive. That means the prospects will get better," Indrawati said.
This achievement has been the result of the state budget's performance, which has been carefully maintained, she added. The positive performance has resulted in strong confidence in the economy and the State Budget, and the risks are considered to be well-managed.
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Translator: Imamatul Silfia, Katriana
Editor: Azis Kurmala
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