Purbaya Ensures 2026 State Budget Condition is Secure, Ready to Disclose Details Tomorrow
Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has reaffirmed that Indonesia’s fiscal condition remains secure, refuting claims that the state budget deficit is the primary cause of the Rupiah’s weakening. Regarding specific fiscal figures, Purbaya stated that he will present the ‘APBN Kita’ report tomorrow, Friday (5/6/2026), but maintained that the deficit ratio is stable.
“The APBN Kita report will be released tomorrow. You may ask further questions then, and I will explain it again. But fundamentally, it is safe. In May, the deficit rose slightly compared to April to 0.7%. However, that represents a 5-month period compared to 4 months. If we calculate the annualised rate, it is roughly between 1.8% of GDP. Therefore, based on rough estimates, the deficit ratio is safe,” he stated at the House of Representatives (DPR) on Thursday (4/6/2026).
Purbaya also addressed the ongoing pressure on the Rupiah against the US Dollar, which has recently breached a new psychological level of above Rp 18,000/US$.
He acknowledged that exchange rate pressure will inevitably affect the government’s debt servicing costs for dollar-denominated debt, as the payment mechanism requires converting Rupiah-denominated state revenue into US Dollars for holders of Government Securities (SBN).
“When the Rupiah weakens, the payment amount in Rupiah increases,” said Purbaya.
On the other hand, he ensured that both debt coupons and interest payments made by the government are fixed-rate, meaning the state budget will not face significant pressure from fluctuations in the Rupiah against the US Dollar.
As of 30 April 2026, the government holds a number of dollar-denominated securities with fixed coupons. This includes 51 fixed-coupon debt instruments totalling US$ 57.01 billion. Additionally, there are 23 Sharia-compliant state securities denominated in US Dollars, totalling US$ 24.32 billion with fixed coupons, according to records from the Directorate General of Budget Financing and Risk Management (DJPPR) of the Ministry of Finance.