REPUBLIKA.CO.ID, JAKARTA -- Finance Minister Sri Mulyani Indrawati said the government's debt ratio in 2023 fell to 38.6 percent to gross domestic product from 39.7 percent in 2022.

“The government debt ratio fell to 38.6 percent of GDP,” Sri Mulyani said during a press conference of the Financial System Stability Committee (KSSK) in Jakarta on Tuesday (30/1/2024).

While the realization of budget financing in 2023 reached Rp 359.5 trillion, a decrease of 39.2 percent compared to 2022. In line with fiscal consolidation and the recovery of the national economy, debt financing in 2023 could be lowered from the FY 2023 state budget target of Rp 696.3 trillion to Rp 407.0 trillion or a decrease of 41.5 percent from 2022.

According to the Ministry of Finance, this achievement could be realized thanks to prudent debt financing while maintaining a balance between cost of funds and debt risks. With that performance, Sri Mulyani is confident fiscal risks are under control conditions.

In addition to the performance of debt financing, the control of fiscal risks is also reflected in the primary balance, which recorded a surplus worth Rp92.2 trillion. The achievement was the first since 2012. In addition, the budget deficit was also recorded much lower, so 1.65 percent to GDP from the deficit target of 2.84 percent.

“Fiscal risks are under control, reflected by a primary balance that registered a surplus and a prudent financing strategy,” Sri Mulyani said.

The Minister also stated that the performance of the 2023 State Budget remained strong amid falling commodity prices and the performance of the global economy. Realized state revenue reached Rp 2,774.3 trillion or 112.6 percent of the state budget target, with tax receipts exceeding the target of Rp 2,155.4 trillion, growing 5.9 percent yoy.

The positive performance is supported by the continued strong domestic economic activity as well as the effectiveness of the tax reform launched at the end of 2021. The taxation ratio was recorded at 10.2 percent of GDP.

Meanwhile, PNBP's performance improved significantly to Rp 605.9 trillion, mainly supported by optimization of SDA management, improved performance of state-owned enterprises, and service innovation in various ministries/agencies (K/L).

On the other hand, state spending is absorbed optimally so that it is able to maintain the performance of the national economy in the face of various challenges and support the development agenda.

The realization of absorption of state spending reached Rp 3,121.9 trillion or 102 percent of the state budget deficit, supporting the economy in the face of the global slowdown and supporting various government development agendas, such as stunting reduction, extreme poverty, El Nino mitigation, election preparations, and national strategic projects (PSN).