MoF broke law so many times and getaway with it. Do you know how they make up budget shortage during pandemic since tax collection is low? By breaking the law! Getting loan trough ‘creative’ law bending mechanism.
and you still talking about prudent fiscal policy?
RMP can be written off if deemed necessary by the government. In this case, all the related ministries, DPR and the president itself has agreed to MoD scheme. The only ministry that doesn’t agree (yet) is MoF.
About the interest rates, how can you beat G2G loan interest rates with market (B2G) rates? MoD will mostly use G2G loan, whereas MoF always seek loan from the market (commercial). That will be a huge rate differences. And please enlighten us here at defencehub, what is the average interest rates that MoF has been secured from commercial market in the last 7 years of Jokowi’s admin? It’s 10,4% for God sake! Are u kidding me?
Rata-rata bunga utang pemerintah Indonesia 10,4%
Abtrindo Bond index yang mewakili indeks surat utang negara telah meningkat 170,25% selama 10 tahun atau return rata-rata sebesar 10,44% per tahun.
finance.detik.com