The Government Will Add $ 250 Trillion Debt in 2012

This year, government still relies on debt to finance budget shortfalls. Government plans to attract new debt amounted IDR 250 trillion. This is stated by Director General of Debt Management, Rahmat Waluyanto.

"We are targeting debts amounting up to IDR 250 trillion in 2012. It could be in the form of the issuance of government securities (bonds), sukuk, sharia, and others. Including Samurai Bond," said Rahmat.

He said the government is optimistic to reach IDR 250 trillion of debt through the issuance of debt securities, mainly due to the raise of Indonesia's investment grade ranking. The increase in ratings would make the cost of debt or interest government debt lower and cheaper.

"We are optimistic about IDR 250 trillion of debt can be achieved due to increased investment grade," said Rahmat.

As known, the total of Indonesian government debt up to November 2011 had reached USD 1816.85 trillion or an increase of IDR 48.81 trillion compared to October 2011 (USD 1768.04 billion).

If compared December 2010 debt (up to USD 1676.85 billion), the amount of the November 2011 debt increased up to IDR 140 trillion. Indonesian debt also rose from 27.5% in October 2011 to 28.2% in November 2011 as per ratio to GDP.

Source: Detik Finance