RI Current Debt is Relatively Small, Cabinet Secretary Says

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 24 Juli 2017
Category: News
Read: 2.999 Views
Cabinet Secretary Pramono Anung answers the reporters’ questions after the Plenary Cabinet Meeting, at the State Palace, Jakarta, Monday (24/7) afternoon. (Photo: Agung/PR)

Cabinet Secretary Pramono Anung answers the reporters’ questions after the Plenary Cabinet Meeting, at the State Palace, Jakarta, Monday (24/7) afternoon. (Photo: Agung/PR)

Cabinet Secretary Pramono Anung considered the growth of the Indonesian Government debt is relatively small. He reminded the public that three years ago, precisely at the end of 2014, Indonesian Government debt reached Rp2,604.93 trillion. Meanwhile, in April 2017, the Government debt grew to Rp3,667.41 trillion.

“Every year, we pay the debt of Rp250 trillion. So, in three years, it becomes Rp750 trillion. Well, now the debt is around Rp3,600 trillion, so actually the debt is relatively small,” Pramono told reporters after a Plenary Cabinet Meeting, at the State Palace, Jakarta, Monday (24/7) afternoon.

Cabinet Secretary Pramono admitted that issue of this Government debt needs to be explained to the public. He explained, when President Joko ‘Jokowi’ Widodo took office, the debt was already Rp2,700 trillion. Then, every year we have to pay the debt. “It is already Rp250 trillion. That is, in three years, it becomes Rp750 trillion. “Well, just add up now how much is owed by the Government,” Cabinet Secretary Pramono said.

Nevertheless, Cabinet Secretary Pramono acknowledged the Government will definitely make savings, although it still has to focus on infrastructure development. “So the point is, given in 2018 we are going to enter the political year, of course, we must focus on the budget, and also the savings and efficiency need to be done,” Cabinet Secretary Pramono said.

Cabinet Secretary Pramono added that President Jokowi in his direction also asked the Ministers to be able to explain the problems facing the Government at this time.

He asserted that as for 2018, the Government believes, if everything can be maintained, then the economy will be able to grow by 5.3 to 5.4 percent.

When it comes to the focus of the 2018 State Budget, according to Cabinet Secretary Pramono, it remains in the fields of infrastructure, poverty alleviation, then also related to the Ministries and Institutions so that the Gini ratio could decrease.

Economic Recovery

Consistent with Cabinet Secretary Pramono, Finance Minister Sri Mulyani Indrawati said in the 2018 Draft State Budget, the Government will keep the economic recovery. Therefore, tax revenue and from the balance of spending will be made, so that the momentum of economic growth is maintained.

“The focus of the President is that we do not only work regularly. So, in this case, the planning should be improved, so that if we do the budget, it really can be used because the President also said that every expenditure means that the tax must immediately return to the community so that it benefits the community,” the Minister said. (FID/AGG/ES) (MUR/YM/Naster).

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