Purbaya Confirms National Debt Ratio Remains Safe, Tax Rates Will Not Increase

Finance Minister Purbaya Yudhi Sadewa has confirmed that the national debt ratio, recorded at 40.54 percent of gross domestic product (GDP) in 2025, remains safe. The figure is considered well below the maximum limit of 60 percent of GDP as stipulated in the State Finance Law. “The government asserts 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 60 percent of GDP maximum limit according to the law, so our state budget remains safe and under control,” Purbaya said during the 25th DPR Plenary Meeting of Session V in Jakarta on Tuesday (14/7/2026). Responding to concerns from several DPR RI factions regarding the rising debt ratio, Purbaya stated that the future debt management strategy rests on four pillars. These four pillars include gradual fiscal consolidation to strengthen the primary balance towards a positive position, optimisation of state revenue, improvement of state 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 explained. Based on data from the Directorate General of Financing and Risk Management, the government’s debt position reached Rp 9,920.42 trillion or 40.75 percent of GDP as of 31 March 2026. According to Purbaya during a media briefing at his office on Monday (13/7/2026), Indonesia’s debt management is relatively more prudent compared to other countries. He cited the debt ratios of several countries that are higher than Indonesia’s, such as Singapore at around 180 percent and Malaysia at around 60 percent of GDP. 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,” he said. The majority of government debt originates from Government Securities instruments. The outstanding value of Government Securities was recorded at Rp 8,652.89 trillion as of the end of March 2026, or 87.22 percent of the total government debt. The remainder consists of loans amounting to Rp 1,267.52 trillion, or 12.78 percent.