Compared to Neighbouring Countries, Purbaya Says Indonesia's 40 Per Cent Debt-to-GDP Ratio Remains Safe

Jakarta, VIVA – Finance Minister Purbaya Yudhi Sadewa has confirmed that Indonesia’s government debt position remains within safe limits, despite the nominal figure having increased.

As of 31 December 2025, total government debt stood at Rp 9,637.90 trillion, equivalent to 40.46 per cent of Gross Domestic Product (GDP).

Purbaya compared Indonesia’s debt ratio with several regional countries. Malaysia’s debt ratio in 2025 was recorded at approximately 64 per cent of GDP, whilst Thailand’s stood at around 63.5 per cent of GDP. Singapore’s debt ratio was significantly higher, at approximately 165-170 per cent of GDP.

“By that standard, we are still safe,” said Purbaya at the House of Representatives in Senayan, Jakarta, on Wednesday, 18 February 2026.

He added that the budget deficit continues to be maintained below 3 per cent of GDP. The government is deliberately utilising the available deficit headroom to drive economic recovery and a turnaround in the economy’s trajectory.

“So our strategy is to maximise the existing deficit to ensure the economy turns around. That is actually a very smart strategy. We don’t exceed 3 per cent, we pursue fiscal expansion, provide stimulus to the economy, and the economy recovers,” he said.

Purbaya assessed this approach as an appropriate measure to maintain growth momentum without breaching fiscal discipline boundaries.

He acknowledged that the government does not wish to act recklessly in making policy decisions that could risk suppressing purchasing power and causing the economy to falter once more.

For reference, throughout 2025 the State Revenue and Expenditure Budget (APBN) deficit was recorded at Rp 695.1 trillion, or 2.92 per cent of GDP.