Tuesday, 11 May 2021 | 21:44 WIB

Gov’t’s Foreign Debt Is Alarming

Rupiah

JAKARTA, NNC - The government's foreign debt is considered to have reached an alarming point. Bank Indonesia (BI) recorded that at the end of October 2017, foreign debt has amounted to US$341.5 billion or grew by 4.8 percent year on year (yoy). Where, government debt reached US$169,784 billion.

"The government debt is very big amount at IDR2,300 an trillion," said Chairman of the Anti-Debt Coalition, Dani Setiawan, Monday (12/18/2017).

The greater the debt, the government automatically has to made greater payments. Currently the debt repayment budget takes a sizeable portion of the State Budget (APBN).

"This debt payment occupies a sizeable portion in our State Budget (APBN), with approximately IDR400 trillion in budget allocation to pay principal and interest installment at home and abroad every year," said Dani.

Such conditions, he added, make the other budget portions become depleted. Such as the budget for poverty alleviation programs and community welfare.

"And it causes the government's ability to repay the debt to be so great that it sacrifices other allocations such as budgets to improve the welfare of the people, reduce poverty, rural development and then the necessary public infrastructure and basic infrastructure," he added.

Especially now the state revenue is not optimal so that the new debt taken by the government is actually used to pay off old debts, not for new programs.