Indonesia Ready to Withdraw IDR 600 Trilion New Debt

REPUBLIKA.CO.ID, JAKARTA -- Director of State Debt Securities, Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, Deni Ridwan, said that the government will withdraw new debt worth IDR 600 trillion in 2024.

The new debt is to cover the 2024 State Revenue and Expenditure Budget (APBN) deficit which is targeted to increase to 2.9 percent or IDR 522.8 trillion, compared to the 2023 deficit target of 2.27 percent. "In nominal terms, our debt will increase. Next year with a deficit of around 2.9 percent on average, it is possible that if there is no reduction in the deficit, our debt will increase by IDR 600 trillion," said Deni at the launch of the Electronic Indonesia Bond Market Directory (E-IBMD) on the Stock Exchange Indonesia (BEI) Jakarta, Monday (Dec.18, 2023).

Baca Juga

Deni continued that increasing the debt withdrawal rate in 2024 will increase financing for principal and interest debt. However, Indonesia's debt ratio to Gross Domestic Product (GDP) is still considered safe. "If we compare it with peer countries, our debt to GDP is getting smaller, now it's around 37 percent compare to pandemic era which was 40 percent, this is still relatively low. Let's say ASEAN countries Malaysia, the Philippines, Thailand were reached 70 percent," said Deni.

Cited the 2024 Financial Note Book, President Joko Widodo was preparing to attract new debt or debt financing worth IDR 648.1 trillion as per the 2024 RAPBN, or an increase of 14.9 percent year on year (yoy) compared to this year's outlook of IDR 406.4 trillion. However, the debt financing target has decreased compared to this year's target in the 2023 APBN, which is IDR 696.3 trillion. Meanwhile, debt financing worth IDR 648.1 trillion is to cover next year's budget deficit which is targeted at IDR 522.8 trillion or 2.29 percent of Gross Domestic Product (GDP).