Mengapa Pemerintah Ga Cetak Uang Sendiri Buat Bayar Utang?

Summary

In this video, Melvin Mumpuni discusses Indonesia's government debt, which reached 7,805 trillion IDR by July 2023, and the misconception that printing money could resolve this issue. He compares this to the U.S.'s experience during the COVID-19 pandemic, where excessive money printing led to inflation and financial instability. Melvin explains how the U.S. printed nearly $13 trillion, causing significant economic challenges. In contrast, Indonesia manages its debt through fiscal discipline, such as tax collection and budget control, avoiding the inflationary risks of printing money and focusing on long-term economic stability.

Takeaways

• 😀 Indonesia's government debt reached IDR 7,805 trillion in July 2023.
• 😀 Many people believe financial independence means being free of debt, but how does this apply to a country?
• 😀 The question arises: Why doesn't Indonesia just print more money to pay off its debt?
• 😀 Printing money to pay debt might solve one problem but create a bigger one, leading to inflation.
• 😀 A country that printed excessive money during the COVID-19 pandemic was the U.S., leading to high inflation and economic issues.
• 😀 The U.S. printed nearly 13 trillion USD to handle the COVID-19 crisis, with a significant portion going to direct support and economic recovery.
• 😀 The costs of handling the pandemic in the U.S. exceeded the financial cost of World War II, reaching about 5.2 trillion USD.
• 😀 Printing money increases the money supply, which can lead to higher consumer spending and consequently inflation.
• 😀 When inflation becomes uncontrollable, central banks raise interest rates to manage it, but this can cause government bonds and stock markets to collapse.
• 😀 Indonesia's government manages its debt by maintaining a healthy national budget, increasing tax collection, and monitoring national expenditures, rather than printing more money.

Q & A

What is the total government debt of Indonesia as of July 2023?

As of July 2023, the total government debt of Indonesia reaches 7,805 trillion IDR.

Why can't the Indonesian government simply print money to pay off its debt?

Although the government can print money, doing so would only solve the debt problem temporarily, leading to inflation and potentially more severe economic issues, such as a banking crisis.

Which country faced significant inflation due to excessive money printing during the COVID-19 pandemic?

The United States faced significant inflation due to excessive money printing during the COVID-19 pandemic.

How much money did the U.S. print during the COVID-19 pandemic?

During the COVID-19 pandemic, the U.S. printed nearly 13 trillion US dollars, with significant portions allocated to handling the pandemic and economic recovery.

How does printing too much money lead to inflation?

When a government prints too much money, the money supply increases. As people receive more money, their purchasing power rises, leading to higher demand for goods. However, if the supply of goods doesn't increase accordingly, prices go up, resulting in inflation.

What was one of the major consequences of the U.S. printing money during the pandemic?

One major consequence was a significant rise in inflation, as shown by the sharp increase in the money supply, which led to higher prices for goods and services.

How did the U.S. government attempt to address the financial impact of the COVID-19 pandemic?

The U.S. government allocated money for direct subsidies to citizens, unemployment benefits, vaccines, business support, and healthcare, among other economic relief measures.

What is the effect of high inflation on the central bank's actions?

High inflation forces the central bank, like the Federal Reserve in the U.S., to raise interest rates in an attempt to curb inflation and stabilize the economy.

How does raising interest rates affect the economy?

Raising interest rates typically leads to higher borrowing costs, which can reduce consumer spending and investment, slowing down inflation. However, it may also negatively affect the bond market and lead to other economic challenges.

How does the Indonesian government plan to manage and pay off its debt?

The Indonesian government plans to manage its debt by focusing on improving the fiscal health of the state budget, collecting taxes, and controlling government spending, rather than printing money.