Data on the public debt in the Jokowi era, which reached 6.074 trillion rupees.

JAKARTA, KOMPAS.com – The Finance Ministry (Kemenkeu) released the total public debt in the era of President Joko Widodo (Jokowi) as of December 2020, amounting to 6,074.56 trillion IDR.

Thus, the relationship between public debt and gross domestic product (GDP) reached 38.68 percent. The debt comes from the internal debt plus the external debt.

Quoted from Happy, Wednesday (2/17/2021), on an annual basis, the public debt index increased from the level of 29 percent of GDP in December 2019.

The special staff of the Minister of Finance for Strategic Communications, Yustinus Prastowo, also responded to the controversy of the increase in public debt. According to him, although the proportion has increased, Indonesia has never stopped paying.

Also read: Comparison of Indonesia’s external debt in the era of Jokowi and SBY

“We never default pay off the debt. Even when our ratio is high enough, ”said Prastowo.

Citing information in the KiTa edition of January 2021 of the State Income and Expenditure Budget (APBN) book, although it is increasing, the public debt index at the end of last year is still below the limit regulated by law ( UU).

For information purposes, Law Number 17 of 2003 regulates the maximum limit of the public debt ratio at 60 percent.

Thus, the composition of public debt has remained below this limit up to now, as a way of controlling risk while maintaining macroeconomic balance.

Also read: RI’s external debt is now IDR 5.803 trillion, does Jokowi break his promise?

In accordance with the general policy and debt management strategy, the government has also tried to be independent in financing. This can be seen in the composition of central government debt, which is increasingly dominated by debt in the form of government securities (SBN).

Furthermore, the central government’s debt position has actually increased compared to the same period last year.

This increase was influenced by the economic recession due to Covid-19 and the increased need for financing to face health problems and the national economic recovery.

While quoted from Between, Finance Minister Sri Mulyani Indrawati explained that the government is trying to be careful in managing the state budget deficit. Even the condition of Indonesia is much better than that of several other countries.

Also read: Adding more, Indonesia’s external debt reaches 5,803 trillion IDR

He said the government took steps by prioritizing the principle of prudence so that the economic contraction was moderate and the state budget deficit was 6 percent, also relatively lower than other countries with more than 10 percent.

He explained that the higher deficit shows that the debt they have is also increasing, as the deficit in the United States (USA) is close to 15 percent and France to 10.8 percent.

“What does this mean? In just one year, the public debt of these countries increased by more than 10 percent, while Indonesia may remain in the 6 percent range,” he explained.

Not only that, he mentioned many developed countries whose public debt has exceeded the value of GDP, such as the United States by 103 percent, France more than 118 percent, Germany 72 percent of GDP, China almost 66 percent and India about 90 percent.

Also read: 2 periods Jokowi, RI’s external debt increases 1.721 trillion IDR

Meanwhile, Indonesia also experienced an increase in debt, but the ratio to GDP stood at the 38.5 percent level, so it is still in position. prudent Compared to developed and ASEAN countries such as Malaysia 66 percent, Singapore 131 percent, the Philippines 54.8 percent and Thailand 50 percent.

“We estimate that (Indonesia’s debt) will be close to 40 percent of GDP, but once again Indonesia is still in a relatively cautious position. prudent,Sri Mulyani said.

However, Sri Mulyani emphasized that the government will continue to restore the national economy through the State Budget and other instruments, including monetary ones.

2021 APBN spending will reach Rs 2,750 trillion, including Ministry / Institution (K / L) spending of Rs 1,059 trillion, non-K / L spending of Rs 910 trillion and transfers to local governments that they will reach 780 trillion rupees.

“This is our willingness to continue to maintain the national economic recovery and keep the state budget and our economy healthy,” said Sri Mulyani.

Also read: When Jokowi promises to stop soy imports and the reality now