Jakarta. The government has issued state bonds amounting to Rp 107.6 trillion ($6.9 billion) to fund the state budget as of January 31. This figure constitutes 16.6 percent of the annual debt target set at Rp 648.1 trillion for the fiscal year 2024.

Despite this, Vice Finance Minister Suahasil Nazara said the debt burden remains within a safe limit and is in line with the planned trajectory.

"Our budget financing remains on track. We will continue to closely monitor the financial markets to ensure that the state bond issuance is truly efficient,” Suahasil said during a news conference in Jakarta. “We take anticipatory measures to mitigate the risks arising from global fluctuations.”

He further explained that the government conducted meticulous calculations regarding the amount of state bonds, the timing of their issuance, and whether they are denominated in foreign or local currencies.

"We are coordinating with Bank Indonesia to ensure prudent and flexible financing while identifying the right moment [to issue state bonds] according to our target," Suahasil added.

According to central bank data, the government’s foreign debt stood at $196.6 billion as of December 2023, reflecting a 5.4 percent year-on-year (YoY) increase.