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Government’s debts close to IDR 750 thousand trillion in October 2022

28 November 2022 04:54

JAKARTA. The Ministry of Finance recorded government’s debts of IDR 7,496.70 trillion as of October 2022, which equals to approximately 38.36% of Indonesia’s Gross Domestic Product (GDP). Said ratio decreased from 39.69% seen in the same period in 2021.

The debts were dominated by Government Securities (lit. Surat Berharga Negara/SBN), which covered 88.97% of total debts at the end of October 2022. Furthermore, the debts were mostly recorded in rupiah, or approximately 70.54% of total debts. The fact that rupiah dominated the debts could be considered as an advantage when facing the volatility of foreign currency exchange rates and its impact towards foreign debt payment.

As of now, most of SBN belongs to banks and Bank Indonesia, whereas foreign investors’ portions have continued to decline since 2019. In 2019, foreign investors owned 38.57% of the securities, then declined to 19.05% at the end of 2021, even hitting 14,00% as of October 14, 2022.

The government believes that this downturn in investors’ ownership portions signified a consistent effort in securing financial independence through a solid support from the adequate domestic liquidity. It was just as stated on the record of the Ministry of Finance in the November 2022 edition of the Performance and Target of the State Budget, quoted in Bisnis yesterday (27/11).

However, compared to last month, the government’s debts in October 2022 rose from IDR 7,420.47 trillion in September 2022. (AM/ZH)

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