Government consistently pays its debt: Minister

Jakarta (ANTARA News) - Coordinating Minister for Economic Affairs Darmin Nasution said the government is consistent in resolving its old debt problem and not just adding new debt.

"The government continues to pay its debt, including the debt in the previous government," Nasution said in Jakarta on Friday.

Nasution asserted the total outstanding government debt that has reached Rp4,034.8 trillion is the accumulation of previous government debt that must still be paid in the long run.

He also said Indonesias debt management was good and there was no problem.

Earlier, the Ministry of Finance noted, the ability of the government to repay debt was still strong and that the ratio of debt to GDP is still in the range of 29.24 percent.

The 29.24 percent debt ratio to GDP is smaller than those of economically equivalent countries, such as Vietnam with 63.4 percent, Thailand 41.8 percent, Malaysia 52.7 percent, and Brazil 81.2 percent.

Of the total government debt of Rp4,034.8 trillion at the end of February 2018, the majority came from the issuance of State Securities (SBN) which reached Rp3.257.26 trillion or 80.73 percent of total government debt.

From the issuance of SBN, about Rp2,359.47 trillion or 62.62 percent was issued in rupiah denominations and Rp897.78 trillion or 18.11 percent was issued in foreign currencies.

In addition to the issuance of SBN, the debt financing comes from government foreign loans with a portion of Rp777.54 trillion or 19.27 percent.

Source: ANTARA News

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