Economist: Future Generations May Work Only to Pay Off National Debt

JAKARTA, KOMPAS.com - The government’s debt position continues to rise and is approaching Rp10,000 trillion in the first quarter of 2026. Amid this increase, economists are highlighting its impact on the state budget (APBN) and the government’s fiscal space. The Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance records that the total government debt reached Rp9,920.42 trillion as of 31 March 2026. This figure rose by approximately Rp282.52 trillion or 2.9 percent compared to the end-of-December 2025 position of Rp9,637.99 trillion. According to him, the government’s biggest challenge at present is increasingly burdensome state revenues amid continuously rising spending needs. This situation has the potential to widen the budget deficit in the coming years. “We are on the borderline, still safe but at risk of slipping if not careful,” said Wijayanto when contacted by Kompas.com on Thursday (14/5/2026). Wijayanto explained that to cover the APBN deficit while paying interest and refinancing maturing debt, the government must continue to issue new debt securities. However, this step is seen as creating two major pressures on the national fiscal. First, the portion of the APBN used to pay debt interest will continue to increase. Secondly, according to Wijayanto, the government will face challenges in finding investors to buy debt securities amid increasingly tight global competition. “Other countries are also issuing debt securities, while Indonesia is seen as increasingly risky,” he said. Wijayanto added that the national debt burden will ultimately be borne by the entire society, especially current and future taxpayers. “All taxpayers, us and our successor generations,” he said when asked who would bear the debt payments.