REPUBLIKA.CO.ID, JAKARTA -- The government planned to add Rp 605 trillion debt next year. The addition of debt was needed to cover the budget deficit, to cover the state capital participation (PMN), and to pay debts and its interest.

"Gross financing requirements in 2016 is Rp 605 trillion," said Finance Minister, Bambang Brodjonegoro, at Ministry of Finance, Monday (7/12).

Bambang explained, the debt was needed because the government wanted to keep expansionary fiscal policy. The government wanted to make government spending as a source of growth because of the weak global economy.

"One key to pursue growth was by building infrastructure. Our country needs large spending because the infrastructure left behind," he added.

Read: Foreign debt in private sector can cause economic fluctuations

Bambang stated, Indonesia could no longer depend its hope on the growth from exports. In addition to weak economy of a number of countries that are trading partners, commodity prices also remained low.

Director General of Finance and Risk Management of Ministry of Finance, Robert Pakpahan, detailed the financing needs Rp 605 trillion would be obtained from the issuance of securities (SBN) of Rp 532.4 trillion, foreign loans of Rp 69.2 trillion, and withdrawal of domestic borrowing of Rp 3.7 trillion.

"Finding financing next year will not be easy because there is still uncertainty of global financial conditions," he said.

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