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Infrastructure Development Makes Indonesia Debt Soaring High

by Sebastianus Epifany Wednesday, May 31, 2017 - 15:55

JAKARTA - The focus of infrastructure development has made Indonesian government debt soaring high which to date reaching Rp 3,667.41 trillion. This was explained by Coordinating Minister for Economic Affairs Darmin Nasution.

Despite the huge amount of debt, Minister Darmin explained that the debt ratio to Indonesia's gross domestic product (GDP) is still low when compared with the other countries. He said the government has been trying to reduce the debt portion in promoting development performance by inviting private and corporate entities.

Darmin explained that through the scheme of cooperation between the government and business entities (KPBU), the burden of the state budget (APBN) in building infrastructure will be slightly reduced.

"The government is trying to make the infrastructure development not to burden the state budget. If you see now a lot of development, for drinking water, toll roads, all use KPBU, it is actually so as not to burden the state budget," said Darmin Nasution as reported from antaranews.com (31 / 5/2017).

The Directorate General of Financing and Risk Management of the Finance Ministry noted that by the end of April 2017, the total central government debt reached Rp 3,667.41 trillion, up around Rp17 trillion, compared to the debt portion in March 2017 of Rp3,649.75 trillion.

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