Paramadina University Chancellor Didik J Rachbini presented notes on the financial note of the Draft State Revenue and Expenditure Budget 2025 (RAPBN).
The planned 2025 RAPBN budget deficit is IDR 616.2 trillion. As in previous years, he said, this deficit is very large and will inevitably have to be filled with debt.
“In the 10 years of this administration, the debt policy has been irresponsible so its legacy will continue into the Prabowo administration,” he said in a written statement, Saturday (17/8/2024).
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With so many political commitments, Didik said that it will be difficult for the future government to reduce dependence on debt by increasing the state’s income. Therefore the rate of issuance of government debt securities will continue to increase and harm the macro climate as interest rates will continue to be pushed up.
Until mid-2024, at least nearly IDR 1,000 SBNs have been offered but only half of that has been sold in the market, around IDR 517 trillion. In 2023, SBN offered on the market will reach IDR 1,800 trillion, but the market will sell for IDR 807 trillion.
“So, for the last 10 years the Jokowi government has pushed the debt economy into the abyss until it has to dig holes to cover the holes,” said Didik.
He compared Susilo Bambang Yudhoyono’s government which inherited a debt of around IDR 2,608 trillion. In the following ten years, the total debt reached IDR 8,338 trillion, increasing threefold with very high interest payments amounting to IDR 497 trillion.
“The interest burden on this debt is much greater than any ministry, department or departmental budget item. When compared, for example, with the APBD of the department, this debt payment is 1600 percent more the height of the total APBD of the people of West Java,” he explained.
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2024-08-17 12:00:37
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