"We predict the ratio of government debts to GDP will reach 23 percent in 2013 compared to 28 percent in 2009 and 88 percent in 2000," Finance Minister Agus Martowardojo said.
Jakarta (ANTARA News) - The government is seeking to curb the ratio of government debts to gross domestic product (GDP) to 23 percent by the end of 2013 and overcome a budget deficit using domestic financing sources, Finance Minister Agus Martowardojo said.

"We predict the ratio of government debts to GDP will reach 23 percent in 2013 compared to 28 percent in 2009 and 88 percent in 2000," he said in a press conference here on Monday,

The government also has set the target of domestic financing for 2013 at Rp172.8 trillion by issuing state debt securities and the target of foreign financing for 2013 at Rp19.5 trillion, he said.

The move is intended to offset a budget deficit which has been set at Rp153.3 trillion or 1.65 percent of GDP for 2013, he said.

"We will also maintain the net negative flow foreign loan policy," he said.

The government will accurately use foreign loans to finance projects whose process does not involve political agenda and is based on acceptable requirements, he explained.

"As such, even if there are extra new loans the growth of government debt stocks will remain controllable," he said.

According to data from the Finance Ministry, the ratio of government debts to GDP has shown a downward trend since 2007, falling to 24 percent in 2012 from 35 percent in 2007.

In 2007, the government debts reached Rp1,389 trillion, with GDP recorded at Rp3,951 trillion. The government debts continued to increase to Rp1,984 trillion, with GDP recorded at Rp8,543 trillion.

The government debts are projected to increase to Rp2,157 trillion in 2013, with GDP expected to reach Rp9,270 trillion. As a result, the ratio of government debts to GDP will reach 23 percent. (*)

Editor: Heru Purwanto
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