It's only debt to Close Budget Deficit

Director General of Debt Management Rahmat Waluyanto Ministry of Finance stated, a loan or debt when it's only for the financing or close the budget deficit in the state budget. This is in accordance with the laws of the State Budget (Budget).
Nominal debt is increasing, but judging by the ratio of debt to GDP, the debt ratio actually fell.

It was announced said Rahmat Kompas, Sunday (05/20/2012) evening, in Jakarta. Grace before being asked about criticism of members of the House Commission XI, Arief Budimanta, that the foreign debt rose more sharply it is not productive to the real economy of society, but to close the deficit or to financial services or for the debt itself.

"According to the State Budget Law, the increase in debt right now is only used to finance the budget deficit," he said.

However, Rahmat said, the increase in the amount of debt has been approved by the House because they have first discussed the mechanism of the state budget. "Nominal debt is increasing, but if we look at the ratio of debt to gross domestic product (GDP), the debt ratio we are actually getting down," said Rahmat.

According to Grace, within five years, the ratio of debt to GDP continued to decline. In 2007, the ratio of debt to GDP was 35.1 percent, but in March 2012, debt to GDP ratio had reached 23.9 percent.

"This means the ability of our state budget to pay the debt will be even greater than before. This is shown by the improvement in our rating in the eyes of the creditors and financial institutions," said Rahmat again.