Debts Needed to Finance Priority Projects, Says Finance Ministry

Jakarta, MINA – Director of Strategy and Portfolio of the Finance Ministry Scenaider Siahaan said debts are needed by the government to finance priority projects such as infrastructure projects and human recourse development.

In a discussion held by Indonesian Association of Alumnus of Indonesian University (Iluni) here on Tuesday, Scenaider delay of priority projects could result in higher cost of implementation in the future, Antara News reported.

He said the government spending is for improvement in productivity and quality of the people through investment in human resources, health facility and education.

“Now many people have been free from illiteracy that the quality of human resources has improved,” Scenaider said.

He said improved quality of the people would be result in higher productivity that contribute to economic growth.

“In turn it would increase tax revenues that could be used to repay the debts. We think the present tax revenues are safe and would be healthier ahead,” Scenaider said.

Based on official record of the Finance Ministry, the government debts by the end of February 2018 reached Rp4,034.8 trillion or 29.2 percent of the country`s GDP.

The debts included Rp3,257.26 trillion in state bonds (80.73 percent) and Rp777.54 trillion in loans (19 percent).

“In the past, the main sources were loan, now is state securities as loans have limitations that could not meet our requirements in development,” Scenaider added. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)