Sri Mulyani Says Indonesia Withdraws Rp194.9tn Debt as of July 2023

Sri Mulyani Says Indonesia Withdraws Rp194.9tn Debt as of July 2023

TEMPO.CO, Jakarta – Indonesian Finance Minister Sri Mulyani Indrawati stated that the government has withdrawn a debt of Rp194.9 trillion as of July 2023. 

Based on the regulation, she said the debt financing in 2023 is Rp696.3 trillion, and that the debt realization in the first quarter or until June 2023 amounts to Rp166.5 trillion.

“As of July, the increase [in debt] was Rp194.9 trillion,” Sri said in a press conference on the APBN (State Budget), on Friday, August 11, 2023. 

“Looking at and comparing last year’s debt financing, this year’s debt financing has experienced a sharp decline, namely 17.8 percent [year-on-year],” she said.

This means that the realization of new debt financing is 28 percent of the total Rp696.3 trillion based on the State Budget Law. 

Moreover, the state treasurer said the realization of debt financing as of July 2023 consisted of the issuance of Rp184.1 trillion in net government securities or SBN and Rp10.9 trillion in net loans. “This (SBN) is only 25.8 percent of the total [State Budget].”

Sri Mulyani assessed that this was driven by good state revenues and state spending. As a result, the issuance of state bonds could be suppressed by as much as 17.8 percent. “This is the reason why our credit ratings on SBN and APBN are considered stable or have a positive outlook,” she concluded.

AMELIA RAHIMA SARI

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