As Of November 2024, Government Debt Has Increased Again, Reaching Rp 8,680 Trillion

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As Of November 2024, Government Debt Has Increased Again, Reaching Rp 8,680 Trillion

, 29 Dec 2024

Government debt has risen significantly as of November 2024. The total government debt reached Rp 8,600 trillion by the end of November. According to the December 2024 edition of APBN KiTa, the debt amount as of November 30, 2024, is Rp 8,680.13 trillion. This marks an increase of 1.40 percent, or about Rp 119.77 trillion, from the previous month's figure of Rp 8,560.36 trillion. Along with the rising debt, the ratio of government debt to gross domestic product (GDP) has also increased. The debt-to-GDP ratio in September was 39.20 percent, up from 38.66 percent the month before.

The actual debt-to-GDP ratio remains below the legal limit and the medium-term debt management strategy target. According to Law Number 17 of 2003, the debt ratio limit is set at 60 percent, while the medium-term debt management strategy for 2023-2026 targets a ratio of 40 percent.

In terms of composition, government debt is mainly made up of government securities (SBN) in rupiah. The value of government debt in SBN amounts to Rp 7,648.87 trillion, which is 88.12 percent of the total government debt. More specifically, domestic SBN is valued at Rp 6,173.37 trillion, including government bonds (SUN) at Rp 4,979.64 trillion and state sharia securities (SBSN) at Rp 1,193.73 trillion.

Additionally, SBN in foreign currency is valued at Rp 1,475.50 trillion, with SUN at Rp 1,082.67 trillion and SBSN at Rp 392.83 trillion. Furthermore, the total government debt from loans is Rp 1,031.26 trillion, or 11.88 percent of the total debt, which includes domestic loans of Rp 42.88 trillion and foreign loans of Rp 988.38 trillion.

In terms of ownership structure, domestic financial institutions hold about 41 percent of the total domestic government bonds (SBN), while Bank Indonesia (BI) owns 25.3 percent. Foreign ownership of domestic SBN stands at 14.53 percent. According to the Ministry of Finance in the December 2024 edition of the APBN KiTa document, individual investor ownership in domestic SBN has risen from just under 3 percent in 2019 to 8.9 percent by the end of November 2024. The remaining domestic SBN is held by other domestic institutions to meet their investment and financial management needs. To manage debt risk, the government focuses on issuing medium to long-term debt. The average time to maturity (ATM) for government debt is recorded at 8.01 years. The Ministry of Finance states that the government consistently manages debt carefully and strategically, maintaining optimal risks related to interest rates, currency, liquidity, and maturity.

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