5 Facts Concerning Government Debt That Has Reached Rp6,000 Trillion

US Dollar and Rupiah Currency. ©2020 Liputan6.com/Johan Tallo

Merdeka.com – The Supreme Audit Agency (BPK) noted that the government’s debt had reached more than Rp 6,000 trillion in the 2020 Central Government Financial Report (LKPP). The chairman of the BPK, Agung Firman Sampurna admitted that he was worried about the potential decline in the government’s ability to pay debts.

This is because the increase in government debt and interest costs continues to swell to exceed GDP growth. Agung also explained that the debt vulnerability indicator in 2020 had exceeded the vulnerability limit recommended by the IMF.

“That is one, the ratio of debt relief (debt whitening or debt cancellation) to revenue of 46.77 percent, exceeding the IMF’s recommendation of 25 to 35 percent,” he said.

According to him, the ratio of debt interest payments to state revenues also reached 19.06 percent. This is considered to have exceeded the International Debt Relief (IDR) recommendation which was only 4.6 to 6.8 percent. “And the IMF recommendation is 7 to 10 percent,” he said.

Meanwhile, the debt-to-state revenue ratio, which reached 369 percent, is considered by Agung to have exceeded the recommended limit of IDR and IMF. “Exceeding the IDR recommendation of 92 to 167 percent and the IMF recommendation of 90-150 percent,” said Agung.

Here are a number of facts about government debt which reached Rp 6,000 trillion as summarized by merdeka.com.

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