Purbaya Reveals S&P Warning on Indonesia's Debt Interest

Purbaya Reveals S&P Warning on Indonesia’s Debt Interest

Reporter

April 17, 2026 | 03:06 pm

TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa met with the international credit rating agency S&P Global Ratings in Washington, D.C., on Tuesday, April 14, 2026. Purbaya revealed that S&P issued a warning regarding the Indonesian government’s debt ratio.

According to the state treasurer, S&P highlighted the ratio of state debt interest payments relative to total revenue. “They issued a warning, noting that interest payments compared to income have exceeded 15 percent,” Purbaya stated in a release quoted on Friday, April 17, 2026.

Purbaya explained that the government will continue to monitor these conditions while maintaining the integrity of the state budget (APBN). “I said we will continue to monitor it, ensuring that economic conditions remain favorable and that the financial landscape does not deteriorate in terms of interest payments,” he said.

An acceptable ratio of debt interest payments to state income, according to standards held by institutions like S&P, is generally below 15 percent. In reality, with Indonesia’s debt interest payments reaching Rp599.5 trillion this year against a state revenue target of Rp3,153.9 trillion, the ratio has hit 19 percent.

This means that 19 percent of the total state income is being utilized solely to service debt interest, excluding the repayment of the government’s principal debt. In the current year, under State Budget Law No. 17 of 2025, the government is set to take on new debt amounting to Rp832.2 trillion, an increase from last year’s target of Rp775.9 trillion.

Previously, S&P Global Ratings released a report suggesting that Indonesia’s national debt rating is vulnerable to weakening fiscal or external credit indicators due to the ongoing conflict. Indonesia’s credit rating is considered more precarious than that of several of its ASEAN neighbors, such as Malaysia, Thailand, and Vietnam.

Despite this, Purbaya stated that during the meeting in Washington, S&P confirmed they would maintain Indonesia’s debt rating at the BBB level with a stable outlook. S&P typically releases or updates Indonesia’s sovereign credit rating in July. According to Purbaya, an S&P team will visit Indonesia in June 2026 to conduct a formal assessment.

Read: BI Governor, Purbaya Meet US-ASEAN Business Council at IMF Meeting

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