VIVAnews - Within six years since the Susilo Bambang Yudhoyono stepped in into the presidential office, the amount of debts recorded by the Indonesian government has risen Rp 326 trillion (US$36.3 billion). In 2004, the government still owed Rp 1,300 trillion and increased to Rp 1,626 trillion until July 2010.
However, in the same period, the Yudhoyono administration managed to reduce debt ratio over the GDP. In fact, the decrease was recorded at 57 percent in 2004 before eventually touched 28 percent in 2010.
The new statistics data on the government's debts released this month by the bond authorities in the Ministry of Finance showed that the additional debts have resulted in higher GDP. As a result, the debt ratio over the GDP has been significantly cut.
In a speech before the House of Representatives last week, President Yudhoyono stated that he would make use of the either domestic and foreign financial sources of budget deficit. The financing refers to stable and sustainable financial sources as well as minimal risk.
"The main source of domestic financing will still be from State Bonds issuance," said the President. In addition, foreign financial source will be coming from foreign loans.
Given the said measures, the president vowed to level down the government's debt ratio over the GDP by 27.8 percent in late 2010 to 26 percent to late 2011.
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Translated by: Bonardo Maulana W
