inp.polri.go.id - Jakarta. The Finance Minister Sri Mulyani Indrawati says Indonesia's debt is relatively well maintained amid global uncertainty and high geopolitical tensions in the world.

Sri Mulyani says the debts of many developed countries have spiked from 70% to 112% from the gross domestic product, while in the developing countries, the debt rate increased post-pandemic rose from 47% to 71%.

“If we see the matter from this perspective, Indonesia is relatively safe,” says Sri Mulyani on Monday (9/2/2024).

By the end of July 2024, the debt ratio of Indonesia had decreased to 38,68% which is still in the safe zone as regulated in Law Number 17 of 2003 concerning State Finances.

According to the Indonesian Treasurer, the debt spiking in those countries is because the fiscal and monetary space has become very narrow due to the global conditions that have not fully recovered from the pandemic, and the occurrence of war and geopolitical tensions.

She said that globally, the conditions in 2024 have not shown any improvement or optimism because the global situation is still the same and even tends to worsen due to geopolitical tensions and wars in a number of countries.

Moreover, disruption due to wars caused the inflation rate to skyrocketed, followed by soaring global interest rates, although interest rates are expected to decrease starting in September 2024, especially in the United States. War can also cause supply disruptions, causing commodity prices to soar.

These conditions caused the world economic growth to weaken. The International Monetary Fund predicts the global economic frowth in 2024 to be 3.2 percent, or lower than the previous year, and in 2025 it would grow to 3.3 percent.

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