Government Increasingly Crunching Debt, APBN Threatened
By : Herry Barus And Aldo Bella Putra | Monday, January 01 2018 - 20:00 IWST
Ilustrasi utang luar negeri indonesia (sindonews.com)
INDUSTRY.co.id - Jakarta - The government is asked to remain prudent in managing spending and debt. Moreover, it seems that the government will rely fully on development financing from the financial sector.
Member of House Commission XI, Heri Gunawan said the increasing deficit resulting in increased debt amount will make it difficult to realize a positive primary balance.
"In 2018 the posture alone states that state revenue is about 14 percent of GDP, while spending could reach 16 percent of GDP, the gap will be a serious problem," explained Heri.
Debt continues to be a burden. The government seems to be lulled by the debt ratio, the more heavily accumulated debt. According to Heri, when viewed from the trend, the debt ratio tends to increase.
By 2014 by 24.7 percent, the year 2015 rose sharply to 27.4 percent, then in 2016 to 27.9 percent, in 2017 at 28.2 percent. The year 2018 is projected to touch 29 percent to GDP.
"From the data I do not see any trend of debt with a decrease as mentioned," he said.
Debt is definitely going to be APBN. Moreover, with the end of the Tax Amnesty Program, the government will find it increasingly difficult to realize better state revenues.
On the other hand, continued Heri, the burden of maturing debt payments is getting bigger. In 2018 will be Rp 390 trillion, and when in 2019 will be in the range of Rp 420 trillion. Thus, the total amount on the maturing payment reaches Rp 810 trillion.
Heri added, to be known, more than 70 percent of state revenue comes from taxes. Meanwhile, his realization value continues to deviate from the plan. In 2015, the realization is only Rp 1,285 trillion or deviated from the Revised State Budget target of 1,489 trillion. The year 2016 also deviated from the target APBN-P TA 2016 amounting to Rp1.539, 2 trillion. At the same time, Indonesia's tax ratio is the lowest in the world, which is only 11 percent.
"If we look in more detail, the realization of tax revenue has decreased in the range of 2.79 percent compared, so, certainly the government will continue to have difficulty meeting the target of tax revenue," he explained as reported by Rmol.
According to Heri, as the government continues to rely on taxes as the largest revenue source to boost economic growth, it will continue to threaten the state budget.
"Load debt plus interest due, just waiting for time to erupt and bring us to collapse situation," he added.