Indonesia's Debt-to-GDP Ratio Remains Sound: Govt

RRI.CO.ID, Jakarta – Indonesian Minister of Finance, Purbaya Yudhi Sadewa, confirmed that Indonesia’s debt-to-GDP ratio remains at a safe level. Through 2025, the debt-to-GDP ratio is projected to stand at 40.54 percent.

According to Minister Purbaya, this figure remains well below the maximum limit of 60 percent of GDP. This limit has been established in the State Finance Law as a benchmark for national fiscal management.

“It is indeed true that the debt-to-GDP ratio has increased from 39.81 percent of GDP in 2024 to 40.54 percent of GDP in 2025. However, this is still well below the maximum limit of 60 percent of GDP, so our State Budget remains sound and under control,” said Minister Purbaya in a statement in Jakarta on Tuesday, July 14, 2026.

Minister Purbaya’s statement was a response to concerns from several factions in the House of Representatives (DPR) about the increase in the government’s debt-to-GDP ratio. According to him, the government has prepared a medium-term strategy to maintain the state’s fiscal sustainability.

Minister Purbaya emphasized that future debt management will focus on strengthening the primary balance, optimizing State Revenue, improving the quality of expenditure, and actively managing the debt portfolio.

“Through this strategy, the government is optimistic that the debt-to-GDP ratio can be gradually brought under control -- while, of course, maintaining fiscal sustainability and advancing the national development agenda,” said Minister Purbaya.

Minister Purbaya added that the government will also implement various debt management instruments such as debt swaps, buybacks, and loan conversions. This is done to maintain a healthy debt profile and keep fiscal risks under control.

According to him, the government’s debt stood at IDR 9,920.42 quadrillion (approximately USD 548.99 billion) as of March 31, 2026. This figure is equivalent to 40.75 percent of the national GDP.

Minister Purbaya noted that Indonesia’s debt management is more prudent than that of several other countries. For example, Singapore’s debt-to-GDP ratio stands at around 180 percent, while Malaysia’s is in the range of 60 percent.

The majority of government debt is held by Government Securities (SBN). As of the end of March 2026, outstanding SBNs totaled IDR 8,652.89 quadrillion, accounting for 87.22 percent of total government debt.

Meanwhile, government loans totaled IDR 1,267.52 quadrillion, or about 12.78 percent. This composition indicates that domestic and global financial market instruments still dominate government financing. (Gusti Panji)