What's Wrong with Indonesia Debt?

19 March 2019

Indonesia debt seem run faster in recent year, perhaps the infrastructure built up made administration collect debt more. It's OK if it is to invest in productive thing like infrastructure, cause it will return soon or later. The problem arise if the accumulate debt could affect the Indonesia economy.

As many country already suffered on same problem raising the debt, the budget actually had to be looked again. Confident with the healthy budget it's OK, but external factor could jeopardize the future economy. If debt payment starting to heavy for current budget, that's mean should select or take priority on important budget.

Indonesia had been known for in-efficiency on budget priority, especially in province or district. The budget to paid for the staff nearly take all the share in the local budget. This is of course not healthy, no investment so the loan or debt have no return at all.

If we look again on national budget itself, seem also not so healthy. Administration still allocate too many non productive post, so for infrastructure become less. The debt which is composed from loan plus interest, hardly could pay rationally, since it is not productive post for the budget.

The administration also hardly could change the budget to make more real productive, because the posture economy already based on economy consumptive. Perhaps need to explore more revenue to counter the raising problem of the debt. Soon or later it is like iceberg, not so big on the surface, but already made Indonesia economy not productive.

In the end, administration have to increase budget post for productive sector, like economy creative. This is important to tackle the possibility like Greece debt default, by selecting productive post bigger and delete non productive post. 
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