JAKARTA. Indonesia's debt-to-GDP ratio reached 34.53% as of August 2020, up from 29.8% in August 2019.
In a work meeting with the House of Representatives' Commission XI on Monday (7/9), Deputy Finance Minister Suahasil Nazara said that the increase was affected by interest rates, the rupiah exchange rate, and the increasing issuances of government securities.
The increasing ratio, Mr Nazara said, is in line with the country's expanding deficit amid the handling of the coronavirus (COVID-19) pandemic.
Mr Nazara estimates that deficit in Presidential Regulation No. 72/2020 will reach 6.34% of the GDP until the end of 2020, amounting to Rp 1,039.2 trillion. (AM/MS)