Government Pledges Debt Ratio Below 40 Percent and Budget Deficit Under 3 Percent

REPUBLIKA.CO.ID, JAKARTA – The Prabowo Subianto administration has pledged to keep the debt ratio below 40 percent of Gross Domestic Product (GDP) and the state budget deficit under 3 percent. Coordinating Minister for the Economy Airlangga Hartarto revealed this following a government working meeting at the Presidential Palace in Jakarta on Wednesday (8/4/2026) evening WIB.

“Mr President just committed that the debt ratio will be maintained at the 40 percent level, even though Law (Number 17 of 2003 on State Finances) allows up to 60 percent (of GDP). Likewise, the (state budget) deficit will be kept at the 3 percent level. This will be maintained until the end of the year,” said Airlangga.

According to him, Indonesia’s economy is currently in good condition. This is reflected in various indicators such as the Consumer Confidence Index, Manufacturing Purchasing Managers’ Index (PMI), foreign exchange reserves, balance of payments, and so on. Tax revenues are also growing.

The government is optimistic that economic growth in the first quarter of 2026 can reach around 5.5 percent. “The government still sees economic growth in the first quarter as good, still able to achieve (the target); the Finance Minister also stated it will be larger (or) equal to 5.5 percent,” Airlangga said.