Four Ways Purbaya Plans to Control Indonesia's Debt Ratio

Finance Minister Purbaya Yudhi Sadewa has revealed four pillars for future government debt management, in response to DPR’s scrutiny of the rising debt ratio in the 2025 State Budget (APBN). According to Purbaya, although the government’s debt ratio has increased from 39.81% in 2024 to 40.54% of GDP in the 2025 APBN, it is still far below the safe limit of 60% of GDP set by the State Finance Law. “It is still far below the maximum limit of 60% of GDP, in accordance with the Law, so our APBN remains safe and under control,” Purbaya said during a DPR Plenary Session on Tuesday (14/7/2026). Despite being within safe limits, Purbaya assured that the government will continue to strive to control the level of the government debt-to-GDP ratio. He said the government has prepared at least four policy scenarios to control the debt-to-GDP ratio going forward. The four pillars of the debt ratio control scenario are gradual fiscal coordination to strengthen the primary balance towards a positive position, optimisation of state revenue, improvement of spending quality, and active debt portfolio management through debt switches, buybacks, and loan conversions. “With this strategy, the government is optimistic that the debt ratio can be controlled gradually while maintaining fiscal sustainability and our development,” Purbaya stated. For context, the latest government debt ratio data recorded by the Directorate General of Financing and Risk Management (DJPPR) at the Ministry of Finance as of the end of the first quarter of 2026 stood at 40.75%, with a value of IDR 9,920.42 trillion. This debt has increased again, with an addition of approximately IDR 282.52 trillion compared to the record at the end of December 2025, which was IDR 9,637.9 trillion. At the end of last year, the government debt was still equivalent to 40.46%.