Jakarta, CNN Indonesia —
Prosperous Justice Party politician (VFD) Anis Byarwati admits that Indonesia is trapped debt now. According to him, this situation occurred because debt grew higher than state revenue or economic growth.
This statement was made by Anis in response to the statement by the Supreme Audit Agency (BPK) which said he was worried that the Indonesian government would not be able to pay its debts.
This is because Indonesia’s debt-to-income ratio has reached 369 percent or far above the International Debt Relief (IDR) recommendation of 92-176 percent and the International Monetary Fund (IMF) recommendation of 90-150 percent.
“What is happening now is that debt is growing higher both compared to state revenues and compared to economic growth, so that Indonesia is increasingly trapped in debt,” Anis told CNNIndonesia.com, Thursday (24/6).
He considered that the BPK’s statement needed to be studied more deeply. According to him, the ratio of debt to Gross Domestic Product (GDP) must truly reflect real conditions.
“So far, the calculation is only the debt of the central government to GDP, while the debt of SOEs is not included. In practice in other countries, SOE debt is included in the calculation of the ratio,” he said.
In line with that, he continued, the calculation of the ratio of the Indonesian government’s debt to GDP also needs to be clarified whether it is in accordance with calculations in other countries.
According to him, the absence of SOE debt has caused the ratio in Indonesia to be quite low.
Previously, BPK admitted that it was worried that the Indonesian government would not be able to pay its debts. This is because the ratio of Indonesia’s debt to revenue has reached 369 percent or far above the IDR recommendation of 92-176 percent and the IMF recommendation of 90-150 percent.
“The trend of increasing government debt and interest costs outpacing GDP growth and state revenues which raises concerns about the government’s declining ability to pay,” BPK wrote in the LHP LKPP 2020 executive summary quoted. CNNIndonesia.com, Wednesday (23/6).
(mts/DAL)
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