The amount of Indonesia's external debt reap polemics

News24xx.com -  The amount of Indonesia's external debt reap polemics. Because, the amount of Indonesian government debt under the leadership of President Jokowi until the end of February 2018 is reached IDR 4.035 trillion, increase until 13.46% over the same period in the last year which was only IDR 3.556 trillion or 29.24% of Gross Domestic Product (GDP).

When talking about the rising of Indonesian Government debt, it's reaping many criticism attacks and polemics.

In fact, the Indonesian government through Finance Minister, Sri Mulyani has confirmed that Indonesia keeps managing its debt with carefully. And all the debt is used for productive things, and resulting in increased economic growth in Indonesia.

Even, the government's explanation through Sri Mulyani seems to be a debate in the community.

One of them is from a technical scholar from Bandung Institute of Technology (ITB) Ahmad Akhyar.

Akhyar felt sad with the Sri Mulyani's explanation about Indonesia's debt that compared to Japan. According to Akhyar, Indonesia's debt is inappropriate compared to Japan.

Akhyar wrote an open letter to Sri Mulyani through his Facebook account on Wednesday, March 14, 2018. The open letter is asked the government not to compare Indonesia's debt with Japan.

Responding to the criticism, Head of Information and Communication Bureau of the Ministry of Finance, Nufransa Wira Sakti, said the statement that submitted by Sri Mulyani by comparing the ratio of Indonesia's debt with Japan is more to look at the ability of the Indonesian economy based on the size of GDP to cover debt owned.

"If calculated, until now our economic capability is still more than 3 times compared to the amount of debt held," said Nufransah Wira Sakti, as quoted from okezone.com, Monday, March 19, 2018.

Even so, the debt through the Rp 4,000 trillion can be repaid within 8 years. This was conveyed by the Director of Strategy and Debt Portfolio of Directorate General of Financing, Management and Risk (DJPPR) of the Ministry of Finance, Schneider Siahaan.

Schneider Siahaan explained, with the ability of tax revenues reaching approximately IDR 1,800 trillion per year, is still sufficient to pay the debt.

"In simple terms, we can pay IDR 4,000 trillion, if it is not managed properly, it can not pay because the tax revenue of around IDR 1,800 trillion is estimated this year," he explained.

Therefore, the government seeks to set the time frame for its repayments. Because with the long-term debt repayment, then Indonesia still has time to manage it to maturity.

 

 

EDITOR :
HPN

 

 

 

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