Liputan6.com, Jakarta – The Directorate General of Financing and Risk Management of the Ministry of Finance (Ministry of Finance) ensures that the government is able to pay debt. So far, the Indonesian government has never failed to pay interest and principal when it is due.
“The government always allocates budget for the payment of this obligation in )STATE BUDGET. So in debt, the government gets an agreement from the DPR regarding the amount of the debt and also the repayment,” reads a statement on the official Instagram @djpprkemenkeu, quoted Liputan6.com, Friday (1/10/2021).
As for managing debt financing, the government has always taken a policy of controlling the ratio of debt to Gross Domestic Product (GDP) in a safe level by considering the ability to repay.
The credibility of the Indonesian government in debt management has been tested. This can be seen from Indonesia’s debt rating from rating agencies currently at the level investment grade with outlook ‘stable‘.
“Which means that the government’s ability to manage debt financing, including the obligation to pay interest and principal, is quite good,” he wrote.
This also shows the credibility of the government and is an important consideration for investors in placing capital in government-owned investment instruments.
For that, the government seeks to maintain this trust by managing financing through debt in a prudent, credible, and transparent manner.
To find out the truth of the circulating information, please WhatsApp to the number 0811 9787 670 just by typing the desired keyword.
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