ADB Predicts Indonesia’s Debt to Remain Sustainable in 2020

Indonesia’s debt is expected to remain sustainable this year at a debt-to-Gross Domestic Product (GDP) ratio of below 40%, despite a significant rise in the planned issuance of Government securities to finance Indonesia’s unexpected state spending caused by the COVID-19 pandemic, according to Asian Development Bank (ADB).

ADB’s Indonesia Country Economist, Yurendra Basnett, stated that Indonesia entered the COVID-19 crisis with one of the lowest debt-to-GDP ratios in the world, although the fall in the Government of Indonesia’s revenue and increase in state spending is expected to increase the ratio. Basnett expects Indonesia's debt-to-GDP ratio to reach 37.8% in 2020 compared to the 29.8% recorde...