Record Detail

Pembimbing: Wahyudi -- The growth of government debt over the last 10 years (2010 to 2019) has raised significantly. This condition is caused by the accumulation of government deficit budget policy. Every year, the average deficit of government budget is between 300-350 trillion rupiah. The growth of government debt raises skepticism about the ability to pay the interest and the ability to repay government debt. Our study indicates that there are variations in the sustainability of Indonesia's debt during 2010 to 2019. We use several benchmark indicators such as debt to national domestic product ratio, debt service ratio, r-g, and debt & primary deficit stationarity. We found that debt service ratio for Indonesian government debt is high (25-40%). In addition to that, from indicator of fiscal sustainability (IFS), we found that from 40 research periods (quarters), there is exist 11 periods (quarters) (27.5%) in which the IFS value was greater than 1 (unsustainable). Furthermore, we found that in order to achieve debt sustainability, Indonesian government should reduce the gap in the tax ratio which currently at an average of 6.5% per year.