Debt Interest Ratio Surges, Purbaya: It Will Drop Significantly
Finance Minister Purbaya Yudhi Sadewa has responded to public scrutiny regarding the government’s debt interest ratio to state revenue, which continues to rise. The state treasurer stated that one strategy to manage it would be to increase tax revenues.
The debt interest ratio to state receipts, which is above 15%, has come under spotlight from international rating agency S&P Global Ratings. Therefore, the government will step up state revenues. “We will increase our tax revenues this year,” Purbaya said after attending an event at PT SMI in Ayana Midplaza, Jakarta, on Wednesday, 22 April 2026.
According to Purbaya, if tax revenues increase, the debt interest ratio to income will decrease. “I think it will drop significantly, so no need to worry.”
S&P Global Ratings previously highlighted Indonesia’s government debt interest ratio to income during a meeting with Purbaya in Washington DC, United States, on Tuesday, 14 April 2026. After the meeting, Purbaya revealed the notes given by S&P.
“They gave a warning, discussed in more depth, that interest payments compared to income are above 15%,” Purbaya said in his statement.
This year, Indonesia’s debt interest payments are nearly Rp 600 trillion, targeted at Rp 599.5 trillion in the state revenue and expenditure budget (APBN). These interest payments have risen compared to 2025, which recorded Rp 552.1 trillion, or 2024, which recorded Rp 488.4 trillion.
The safe interest payment ratio to state revenue, based on standards from several agencies including S&P, is generally below 15%. With this year’s interest payments reaching Rp 599.5 trillion, while state revenue is targeted at Rp 3,153.9 trillion, the ratio has reached 19%.
This means 19% of total state revenue is used solely to pay debt interest. The percentage of interest payments to revenue has also risen compared to last year, which reached 18.38%.
Not to mention the government’s principal debt payments. This year, the government will pay maturing debt of around Rp 800 trillion. Thus, the ratio of principal and interest repayments to revenue, or debt service ratio (DSR), is also increasing.
Paramadina University economist Wijayanto Samirin stated that the escalation of wars causing rises in global energy prices and rupiah weakening have contributed to the increased DSR this year. According to him, 25% of government debt is in foreign currencies, especially dollars.
“This will increase the cost of interest and principal debt repayments in rupiah. My estimate is that the debt service ratio will rise from 49% to 51% if the dollar stays at 17,000,” Wijayanto said.
As for the total government debt position as of December 2025, it stands at Rp 9,637.9 trillion with a ratio to GDP of 40.46%. This debt is dominated by government securities worth Rp 8,387.2 trillion and loans worth Rp 1,250.6 trillion.