Jakarta, CNBC Indonesia \u2013 Director General of Financing and Risk\nManagement (DJPPR) at the Ministry of Finance, Suminto, outlined the\nposition of the State Budget (APBN) being in a deficit and its relation\nto the issuance of government securities. He explained this to pupils,\nstudents and attendees at the second day of Jogja Financial Festival\n2026, Saturday 23 June 2026.<\/p>\n
\u2018To start from a somewhat conceptual view of the APBN\u2026 the APBN is\none of the important instruments for development. We want all growth\nengines to work well, to support development,\u2019 Suminto said.<\/p>\n
The development and growth of the economy are required to push\nforward the welfare of the Indonesian people and the engine is the APBN.\nTo achieve high growth, the fiscal engine, namely the APBN, must be\nmaximised.<\/p>\n
In addition, the private sector must also be maximised to support\ngrowth. For this reason, the financial sector becomes a key point in\neconomic activity.<\/p>\n
\u2018The financial sector is the lifeblood of economic activity. The\nfinancial sector supports the fiscal as well as supporting the real\nsector as the important engine of development,\u2019 he said.<\/p>\n
Suminto added that to maximise the APBN\u2019s role for growth and\ndevelopment, fiscal policy needs to be expansionary. This expansionary\nfiscal stance carries risks, namely a deficit in the APBN.<\/p>\n
\u2018The APBN needs to be expansionary, meaning the government needs to\nspend more to finance development. And to achieve the larger\nexpenditures and development objectives, our APBN is designed to run a\ndeficit,\u2019 he explained.<\/p>\n
\u2018The deficit is the way we manage an expansionary APBN to enable\nfaster growth and faster construction,\u2019 he added.<\/p>\n
With an APBN designed to be in deficit, the government must borrow.\nSuminto explained that in the past, because many countries could not\naccess markets, debt was undertaken by drawing facilities from\nmultilateral development banks, such as the World Bank, Asian\nDevelopment Bank (ADB), Islamic Development Bank, and others.<\/p>\n
With current developments, many countries have begun to access\nfinancial markets. Indonesia has also become a stronger and more capable\ncountry so that it can access global financial markets. Therefore, when\nthe government needs to borrow to finance the APBN to accelerate growth\nand development, issuing government securities becomes an option.<\/p>\n
Debt is no longer dominated by bilateral loans between countries or\nloans from development banks or multilateral development banks.<\/p>\n
\u2018Even in the context of our APBN financing, for debt financing now,\n85%-87% of debt financing for the APBN comes from the issuance of\ngovernment securities,\u2019 he said.<\/p>\n
\u2018Not anymore foreign loans. Multilateral, bilateral. Government\nsecurities themselves come in a variety of forms,\u2019 he added.<\/p>\n
As for the forms of government securities issued by the Indonesian\ngovernment, they are varied, there are conventional and shariah, such as\ngovernment sukuk that are absorbed by institutional investors, such as\nbanks, insurers and pension funds. There is also financing through\nRetail Government Bonds (SBN) for individual investors.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/why-is-indonesias-state-budget-deficit-purbayas-aides-explain-1779531568", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }