Sri Mulyani Withdraws Rp266.3 Trillion in New Debt by July 2024, Here’s Why

Jakarta – Minister of Finance (Menkeu) Sri Mulyani Indrawati noted that until July 2024 the government had attracted new debt of IDR 266.3 trillion. This figure is 41.1 percent of the 2024 State Budget target of Rp648.1 trillion.

“As of July 31, although the APBN has made the posture like that, from the debt financing of IDR 648 trillion, only IDR 266.3 trillion has been realized,” Sri Mulyani said at the KiTa APBN press conference, quoted on Wednesday, August 14, 2024.

The Minister of Finance explained that in 2023 the government put the brakes on the withdrawal of new debt for budget financing. So, in 2024, the debt withdrawal will indeed grow high, namely 36.6 percent compared to last year’s 17.7 percent.
“Last year with our high enough revenue, due to the commodity boom, we put the brakes on debt financing very deeply. That’s why last year financing experienced a tremendous decline in issuance, which should have been IDR 437.8 trillion, we only issued IDR 184 trillion SBN issuance,” he explained.

He also detailed, debt financing originating from the issuance of SBN on a net basis reached IDR 253 trillion from the target of IDR 666.4 trillion. That figure is equivalent to 38 percent of the target with growth reaching 37.5 percent compared to last year.

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“This is part of the cyclical when the economy is down we stabilize and when the economy is high we issue smaller, so that it reduces the explosion from the boom side last year,” he added.

Furthermore, debt financing originating from loans was recorded at Rp 3.3 trillion. Meanwhile, non-debt financing was minus IDR 49.3 trillion.

“So if we look at the realization until July 31, the total financing reached Rp 217 trillion, which is 41.4 percent of the APBN posture that is already in the APBN Law,” he concluded. (*)

Editor: Galih Pratama