Jakarta, CNN Indonesia —
Audit Board of the Republic of Indonesia (CPC) RI warns the government regarding the increase debt for a time pandemic covid-19. This is because Indonesia’s debt vulnerability in 2020 has exceeded the limits recommended by the International Monetary Fund (IMF) and/or International Debt Relief (IDR).
The results of BPK’s examination of the 2020 Central Government Financial Report (LHP LKPP) show that: rasio debt service to acceptance has reached 46.77 percent.
“Exceeded the IMF recommendation by 25-35 percent,” BPK wrote in the LHP LKPP 2020 executive summary CNNIndonesia.com, Wednesday (23/6).
In addition, the ratio of interest payments to receipts has reached 19.06 percent, exceeding the IDR recommendation of 7-10 percent.
Meanwhile, Indonesia’s debt-to-income ratio has reached 369 percent or far above the IDR recommendation of 92-176 percent and the IMF’s recommendation of 90-150 percent.
“The trend of increasing government debt and interest costs outpacing GDP growth and state revenues has raised concerns about the government’s ability to pay,” wrote BPK.
BPK also noted that the 2020 fiscal sustainability indicator was 4.27 percent, which had exceeded the limit recommended by The International Standards of Supreme Audit Institutions (ISSAI) 5441-debt indicator, which was below 0 percent.
“The COVID-19 pandemic has increased the deficit, debt and SILPA which has an impact on increasing fiscal management risks,” explained BPK.
(hrf/age)
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