JAKARTA, KOMPAS.TV – Minister of Finance Sri Mulyani Indrawati explained, among others, the cause of the current high government debt.
Sri Mulyani said that the surge in Indonesia’s debt did not just happen. According to him, Indonesia’s debt has been severe since decades ago, and worsened during the 1997-1998 monetary crisis.
“When there was a crisis in 1997-1998 with the bail out, that’s why our debt (the state) is very high because of bonds. So in the end, it is the burden of the state,” explained Sri Mulyani as quoted from Happy, Wednesday (27/10/2021).
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He explained that at that time many companies and banks borrowed United States (US) dollars, including government bonds.
This has become a burden for Indonesia, because the rupiah exchange rate continues to correct, starting from Rp. 2,500 per US dollar to around Rp. 17,000 per US dollar.
In addition to the surge in debt, at that time the government also tried to provide a stimulus to companies so that there would not be more stagnation and maintain economic sustainability.
This former FE UI lecturer also explained that the increase in government debt is like two sides, it can be an economic driver. On the other hand, it can become a burden if it is not managed properly.
Reported Kompas.com, he said, the management of the state budget cannot be separated from debt. Government debt is used to cover the deficit in the State Budget (APBN).
Regarding the number of people who are enthusiastic about discussing state debt, it makes him happy, because they can contribute to overseeing the use of the APBN.
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