Finance Minister Purbaya: Rising Debt-to-GDP Ratio Remains Safe and Under Control

Finance Minister Purbaya Yudhi Sadewa stated that the country’s debt ratio, recorded at 40.54% of gross domestic product (GDP) in 2025, remains safe. This is because the debt ratio is still far from the maximum limit of 60% of GDP as stipulated in the State Finance Law. “The government asserts that although the debt ratio increased from 39.81% of GDP in 2024 to 40.54% of GDP in 2025, this position is still far below the 60% of GDP legal limit, so our state budget remains safe and under control,” Purbaya said during the 25th DPR Plenary Meeting of the Fifth Session Period in Jakarta on Tuesday, July 14, 2026. The statement was made in response to concerns from several DPR factions regarding the increasing debt ratio. He explained that the future debt management scenario is based on four pillars. These four pillars include gradual fiscal coordination to strengthen the primary balance towards a positive position, optimising state revenue, improving spending quality, and active debt portfolio management through debt switch, buyback, and loan conversion. “With this strategy, the government is optimistic that the debt ratio can be gradually controlled while maintaining fiscal sustainability and our development agenda,” Purbaya said. Data from the Directorate General of Financing and Risk Management at the Ministry of Finance shows the government’s debt position reached Rp 9,920.42 trillion, or 40.75% of GDP, as of 31 March 2026. Earlier in May, Purbaya claimed that Indonesia’s debt management is relatively more prudent compared to other countries. He cited examples of peer countries with much higher debt ratios, such as Singapore at around 180% and Malaysia at 60%. 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 our neighbouring countries,” Purbaya said. The majority of government debt originates from Government Securities (SBN) instruments. The outstanding SBN value was recorded at Rp 8,652.89 trillion as of the end of March 2026, equivalent to 87.22% of total government debt. Meanwhile, the other composition is in the form of loans amounting to Rp 1,267.52 trillion, or 12.78%.