Government Draws Rp132.2 Trillion in New Debt, Sri Mulyani: Down 12.2 Percent

Jakarta – The Ministry of Finance (Kemenkeu) Sri Mulyani reported that the realization of budget financing through debt until May 2024 amounted to Rp132.2 trillion.

Finance Minister Sri Mulyani Indrawati said the realization decreased by 12.2 percent from the debt financing target in the 2024 State Budget of Rp648.1 trillion, or 16.2 percent of the State Budget.

“As of May 2024, our debt financing is Rp132.2 trillion, a decrease of 12.2 percent,” Sri Mulyani said in the KiTa State Budget, Thursday, June 27, 2024.

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In detail, debt financing sourced through Government Securities (SBN) amounted to IDR 141.6 trillion, a decrease of 2 percent or 21.3 percent from the 2024 State Budget ceiling.

Sri Mulyani said the decline occurred even though state revenue fell, while state spending soared. This is because the state uses sources from the Excess Budget Balance (SAL) from the previous year.

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“Of course, journalists ask how come debt financing is possible when state revenues fall while spending rises? because we also use sources from the previous year’s SAL,” she explained.

Sri Mulyani explained that the government began using non-debt financing instruments such as SAL. This is a form of the precautionary principle in the APBN in recent years.

Meanwhile, the realization of non-debt financing reached IDR 47.6 trillion, equivalent to 37.9 percent of the 2024 APBN budget ceiling prepared at IDR 125.3 trillion. (*)