Despite Reaching 40.54 Percent of GDP, Purbaya Says Indonesia's Debt Ratio Remains Safe

Finance Minister Purbaya Yudhi Sadewa has confirmed that the country’s debt ratio, recorded at 40.54 percent of gross domestic product (GDP) in 2025, remains safe. During the 25th DPR Plenary Meeting of the V Session Period at the DPR RI building in Senayan, Jakarta, Purbaya assessed that this figure is still far from the maximum limit of 60 percent of GDP, as stipulated in the State Finance Law. “The government emphasises that although the debt ratio increased from 39.81 percent of GDP in 2024 to 40.54 percent of GDP in 2025, this position is still far below the maximum limit of 60 percent of GDP according to the law, so our state budget remains safe and under control,” Purbaya said on Tuesday, 14 July 2026. In response to concerns from several DPR RI factions regarding the increasing debt ratio, Purbaya stated that the future debt management scenario rests on four pillars. These four pillars are gradual fiscal coordination in the context of strengthening the primary balance towards a positive position, optimising state revenue, improving spending quality, and active debt portfolio management through Debt Switch, Buy Back, and loan conversion. “With this strategy, the government is optimistic that the debt ratio can be controlled gradually while maintaining fiscal sustainability and our development agenda,” he said. Based on data from the Directorate General of Financing and Risk Management, the government’s debt position reached Rp9,920.42 trillion or 40.75 percent of GDP as of 31 March 2026. According to Purbaya, Indonesia’s debt management is relatively more prudent compared to other countries. He cited the example of peer countries with much higher debt ratios than Indonesia, such as Singapore at around 180 percent and Malaysia at 60 percent. Compared to developed countries like the United States and Japan, Indonesia’s debt position is also relatively more under control. “They are all high. We are among the most prudent compared to the countries around us,” he said. The majority of government debt originates from government securities instruments. The outstanding value of government securities was recorded at Rp8,652.89 trillion as of the end of March 2026, equivalent to 87.22 percent of total government debt. Meanwhile, the remaining composition consists of loans amounting to Rp1,267.52 trillion or 12.78 percent.