{
    "success": true,
    "data": {
        "id": 1863793,
        "msgid": "purbaya-dismisses-debt-concerns-as-indonesias-external-borrowing-reaches-444-4-b-1784206226",
        "date": "2026-07-16 17:10:51",
        "title": "Purbaya Dismisses Debt Concerns as Indonesia's External Borrowing Reaches $444.4 B",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Economy",
        "summary": "Finance Minister Purbaya Yudhi Sadewa has downplayed concerns over Indonesia's external debt climbing to $444.4 billion, emphasising that the debt-to-GDP ratio remains safely below the 60 per cent Maastricht Treaty threshold at around 40 per cent. He cited S&P's maintenance of the country's BBB sovereign credit rating with a stable outlook as evidence of strong fiscal management. The rise in external borrowing was primarily driven by the public sector, while private-sector debt continued to contract.",
        "content": "<p>Purbaya Dismisses Debt Concerns as Indonesia\u2019s External Borrowing\nReaches $444.4 B<\/p>\n<p>Jakarta. Finance Minister Purbaya Yudhi Sadewa dismissed concerns\nover Indonesia\u2019s rising external debt after it reached $444.4 billion\n(Rp 8,029 trillion) in May, saying the country\u2019s debt remains at a safe\nlevel when measured against the size of the economy.<\/p>\n<p>\u201cWe always compare debt with the size of the economy, not just the\nnominal amount,\u201d Purbaya told reporters at the Presidential Palace in\nJakarta on Wednesday.<\/p>\n<p>Purbaya said Indonesia\u2019s debt-to-GDP ratio remained comfortably below\nthe 60% reference value under the Maastricht Treaty, the European\nUnion\u2019s fiscal framework.<\/p>\n<p>\u201cWe\u2019re still at around 40%, so we\u2019re well below that limit,\u201d he\nsaid.<\/p>\n<p>He argued that a country\u2019s economic capacity is the key indicator of\nits ability to manage debt, noting that several advanced economies carry\nmuch higher debt burdens. According to Purbaya, the United States has a\ndebt-to-GDP ratio exceeding 100%, Singapore around 175%, Germany above\n60%, and Japan roughly 275%.<\/p>\n<p>Purbaya pointed to S&amp;P Global Ratings\u2019 decision to maintain\nIndonesia\u2019s BBB sovereign credit rating with a stable outlook, saying\nthe assessment reflects confidence in the government\u2019s fiscal management\ndespite domestic criticism.<\/p>\n<p>\u201cThat\u2019s why S&amp;P maintained our BBB rating with a stable outlook.\nThey look at how we manage the budget. Even though there\u2019s been a lot of\ndebate domestically, our fiscal management is actually strong,\u201d he\nsaid.<\/p>\n<p>He added that if Indonesia\u2019s debt repayment capacity had weakened,\nrating agencies would have already revised the country\u2019s outlook or\ndowngraded its credit rating.<\/p>\n<p>\u201cIf they believed we couldn\u2019t meet our obligations, the outlook would\nhave turned unstable or negative, or we would have already been\ndowngraded,\u201d Purbaya said.<\/p>\n<p>Earlier, Bank Indonesia reported that the country\u2019s external debt\nrose to $444.4 billion in May from $439.8 billion in April. On an annual\nbasis, external debt grew 2.1% from $435.6 billion in May 2025.<\/p>\n<p>The increase was driven mainly by higher external borrowing by the\npublic sector, including the government and the central bank, while\nprivate-sector external debt continued to contract, although at a slower\npace.<\/p>\n<p>Tags: Keywords:<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/purbaya-dismisses-debt-concerns-as-indonesias-external-borrowing-reaches-444-4-b-1784206226",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}