TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa stated that the national debt-to-GDP ratio, which stood at 40.54 percent in 2025, remains within safe limits. This figure is still far below the statutory ceiling of 60 percent mandated by the State Finance Law.
"The government asserts that although the debt ratio rose from 39.81 percent of GDP in 2024 to 40.54 percent in 2025, this position remains far below the maximum limit of 60 percent, so our State Budget (APBN) remains safe and under control," Purbaya said during the 25th Plenary Session of the House of Representatives' fifth sitting period in Jakarta on Tuesday, July 14, 2026, as quoted by Antara.
Purbaya made the remarks to address concerns from several parliamentary factions regarding the rising debt ratio. He explained that the strategy for future debt management rests upon four pillars.
These pillars comprise gradual fiscal coordination to steer the primary balance into positive territory, the optimization of state revenue, improvements in the quality of government spending, and active debt portfolio management via debt switches, buybacks, and loan conversions.
"Through this strategy, the government is optimistic that the debt ratio can be progressively managed while safeguarding our fiscal sustainability and development agenda," Purbaya said.
Data from the Finance Ministry's Directorate General of Financing and Risk Management revealed that government debt reached Rp9,920.42 trillion, or 40.75 percent of GDP, as of March 31, 2026. Earlier in May, Purbaya asserted that Indonesia’s debt management remains considerably more conservative than that of its global peers.
He pointed to the higher debt ratios of regional peers, noting that Singapore stands at around 180 percent and Malaysia at roughly 60 percent. When measured against advanced economies like the United States and Japan, Indonesia's fiscal position appears far more stable.
'It's high for all. We are among the most cautious compared to our surrounding countries,' said Purbaya.
The majority of the government’s liabilities are held in government securities (SBN). The outstanding value of these securities reached Rp8,652.89 trillion by the end of March 2026, accounting for 87.22 percent of the total public debt stock. The remaining 12.78 percent consists of loans totaling Rp1,267.52 trillion.
Read: Minister Purbaya Says Indonesia Will Not Raise Tax Rates
Click here to get the latest news updates from Tempo on Google News
Minister Purbaya Says Indonesia Will Not Raise Tax Rates
3 jam lalu
Finance Minister Purbaya Yudhi Sadewa said the government will not raise tax rates in the medium term.
Purbaya's Goals for the Rp400tn SAL Bank Transfer
2 hari lalu
Finance Minister Purbaya Yudhi Sadewa transferred Rp400 trillion in excess budget balance (SAL) to the banking sector.
Risky Budget Balance Acrobatics
5 hari lalu
The Financial Minister is withdrawing excess budget balance (SAL) funds from banks, triggering new fiscal and banking problems.
Indonesia's First-Half Revenue Hits 46 Pct of Target, Says Purbaya
6 hari lalu
Indonesian Finance Minister Purbaya reported that state revenue reached Rp1,459.4 trillion during the first half of 2026.
Indonesia Readies Incentives for Global Financial Center
11 hari lalu
Finance Minister Purbaya plans various facilities and incentives to attract global investors to the Indonesian International Financial Center.
How Will Indonesia Attract Investors to Its New Financial Center?
11 hari lalu
Indonesia is gearing up to attract investors to channel capital into the planned Indonesian International Financial Center (IIFC).
Minister Purbaya Says BGN to Implement Further Budget Savings
17 hari lalu
Purbaya stressed that the efficiency measures would not reduce the nutritional standards of meals provided under the Free Nutritious Meals program.
AIIB Plans Representative Office in Indonesia, Minister Says
17 hari lalu
The Indonesian government has pledged to provide land and a building for the AIIB office as part of the cooperation.
Indonesia Won't Cut Free Meal Budget Per Serving, Purbaya Says
17 hari lalu
The budget for the Free Nutritious Meals (MBG) program was cut from Rp335 trillion to Rp268 trillion under the government's efficiency measures.
Minister Purbaya Channels Rp400 Trillion to State-Owned Banks
17 hari lalu
Indonesia has raised government fund placements in state-owned banks to Rp400 trillion (US$24.5 billion) to bolster banking liquidity.
