The Electronic Indonesia Bond Market Directory (E-IBMD) is launched at the Indonesia Stock Exchange (IDX) in Jakarta on December 18, 2023. (Photo: ANTARA) Deni Ridwan, director of bonds at the Finance Ministry’s Financial Risk Management Directorate General, said the new debt will add to the government’s debt both in principal and interest payments.
Indonesia’s debt-to-GDP ratio is about 37%, which Deni said was relatively low compared with other ASEAN nations.
Further borrowing was necessary to finance essential infrastructure projects and social programmes, he noted.
Speaking at the Indonesia Stock Exchange (IDX) on December 18, Deni said that Indonesia’s debt has already increased in nominal terms, and with a projected average deficit of 2.9% next year, it could rise by another 600 trillion Rp if there are no reductions in the deficit.
Indonesia’s budget deficit in 2024 is forecast to be higher than the 2.27% target of GDP in 2023. The Indonesian government's budget deficit management strategy focuses on managing the debt prudently, ensuring effective debt costs through financial markets and selective loans to finance infrastructure projects and technology transfer./.
VNA
