Government Debt Increases Rp 45 Trillion During August

JAKARTA - The financing of APBN-P 2017 is still supported by the role of central government debt. The increase in net debt during August 2017 amounted to Rp 45.81 trillion. The debt comes from the withdrawal of Rp 2.87 trillion (net) and the issuance of Government Securities (SBN) amounting to Rp 42.94 trillion (net).

Director General of Risk and Financing Management at the Finance Ministry, Robert Pakpahan, said the additional debt financing allows for increased productive spending in education, infrastructure, health, transfers to the regions and village funds, as well as social spending. "Up to the end of August 2017, central government debt amounted to Rp 3,825.79 trillion, consisting of Rp 2,563.24 trillion (67.0 percent) of SUN, SBSN of Rp 524.71 trillion (13.7 percent), and loans amounting to Rp737, 85 trillion (19.3 percent), '' he said, in a press release on Thursday (21/9).

The debt is dominated by debt in Rupiah (59 percent). Foreign currency debt, consisting of US dollars (29 percent), Japanese yen (7 percent), euro (4 percent), special drawing rights (1 percent), and several other foreign currencies (1 percent). Based on its creditors, central government debt is dominated by SBN investors (80 percent), then loans from the World Bank (6 percent), Japan (5 percent), ADB (3 percent), and other institutions (6 percent).

"The debt risk indicator in August 2017 is still under control, with the variable rate ratio at 10.9 percent and the refixing rate at 19.0 percent," Robert said.

He added that the portion of debt in foreign currency is at the level of 41.2 percent. While the average time to maturity (ATM) is at the level of 8.8 years. On the other hand, debt maturity indicators with tenor up to 5 years rose from 38.9 percent to 39.2 percent of total outstanding debt.

In debt risk management, Robert continued, the government has always done it carefully and measurably. Including, also keep the risk of refinancing, interest rate risk, and exchange rate risk in a controlled position.