JAKARTA, NETRALNEWS.COM - According to data from the Ministry of Finance, Monday (8/21/2017), as of the end of July 2017, the central government debt has touched the figure of IDR3,779.98 trillion ($226.79 billion).
This means that the debt increased by IDR73.47 trillion from the previous month which amounted to IDR3,706.52 trillion.
The value of the debt is dominated by the Government Securities (SBN) amounting to 80.6 percent or IDR3,045 trillion. Meanwhile, the remaining 19.4 percent or IDR734.98 trillion is in the form of loan withdrawal.
The debt hike comes from the issuance of net SBN reaching IDR65.50 trillion, then the withdrawal of net loans reaching IDR7.96 trillion.
Additional debt financing enables increased productive spending in education, infrastructure, health, transfers to the regions and village funds, as well as social spending.
Using the GDP assumption in the Revised 2017 State Budget of IDR13,613 trillion, the ratio of total outstanding government debt to Gross Domestic Product at the end of July 2017 is 27.77 percent of GDP.
That figure is still lower than the debt ratio of Japan, the US, Britain, Brazil, and India and neighboring countries such as Malaysia, Thailand and the Philippines are above 40 percent.
The ratio of government debt is still below the maximum limit set in Law No. 17 of 2003 amounting to 60 percent of GDP and still lower than the government target until the end of the year which amounts to 28.9 percent of GDP. (*)