First half, public debt withdrawal of 15%

Jakarta, CNN Indonesia – The Ministry of Finance noted the withdrawal of the debt during the first half of 2018 was at Rp176 billion, or 15.3 percent lower than the same period last year with Rp 207.8 billion

Sri Mulyani finance minister Indrawati retail, the withdrawal of this debt is still calculated 44.1% of the budget of the target state (APBN) of Rp399, 2 trillion.

He said, the state budget deficit position up to the first half of the reason the main decline in the debt withdrawal this year. The Finance Ministry noted that the first-half fiscal deficit was recorded at 0.75% of gross domestic product (GDP) or less than last year's position of 1.29% of GDP

"While there is negative growth in Indonesian debt, the funding is much lower than last year," Sri Mulyani told the House of Representatives (DPR) on Tuesday (July 17th).

In addition, he said, the decrease in funding of the state budget is also the right decision. In addition, in the current uncertain situation of the capital market,

Because the bulk of the public debt is obtained by the issuance of the form of state securities (SBN). The longer the issue of SBN, it could affect the balance of payments.

In addition, in the midst of growing sentiment for rising interest rates from the US central bank, it is possible that expectations on SBN yields will increase. "

" That's why the reason the market is volatile, Indonesia may be stronger because the deficit was lower, "he added.

Until the end of the year, he predicts the financing will reach 387.4 billion rupees, less than the state budget target of 99.2 billion rand. This is also thanks to an expected budget deficit of 2.12% of GDP or below the target of 2.19% of GDP.

"So (tied debt) is currently being discussed by society, we mean that we are still managing the state budget carefully," he concluded. )