World Wary of Indonesia's Debt, Purbaya's Deputy Assures Below Rp600 T

The Indonesian government has allocated spending for debt interest payments in 2026 at nearly Rp600 trillion. This burden of interest payments that the state must cover has worried global debt rating agencies like S&P because the ratio is already above 15% of state revenues. As a note, debt ratings from S&P and other rating agencies often serve as a guide for investors in placing their capital in a country. Director General of Financing and Risk Management at the Ministry of Finance, Suminto, stated that the government has indeed budgeted spending for debt interest payments this year at Rp599.5 trillion. However, he said that the realisation is usually below the prepared budget allocation. “From the realisation side, we continue to manage and control it well. We hope that the realisation will not be as large as that,” said Suminto at the Ministry of Finance Headquarters, Jakarta, quoted on Wednesday (22/4/2026). According to Suminto, in budgeting for debt interest spending, the government has set a figure at a level that already covers all potential risks of pressure, from exchange rates or the rupiah’s value against the US dollar, to yields or returns from government bonds. Therefore, the realisation will continue to be controlled below the allocation. “We have calculated the risks of exchange rate movements as well as yields or interest rates, so with the current movements, we expect the debt interest spending budget of Rp599 trillion. It is not only sufficient but we hope it can still be controlled in terms of realisation,” said Suminto. As is known, the government’s debt interest payment spending budget this year is indeed higher compared to previous years. In the 2025 State Budget, for example, it was set at Rp552.1 trillion and in 2024 at Rp488.4 trillion. Based on S&P standards, the safe limit for the ratio of debt interest spending to state revenues is 15%. Therefore, when the value is above that standard, as in Indonesia which is around Rp599.5 trillion or equivalent to 19% of the state revenue target of Rp3,153.9 trillion, they issue a warning. This warning was directly conveyed by S&P to Finance Minister Purbaya Yudhi Sadewa during the IMF-World Bank Spring Meetings in Washington DC, specifically on Tuesday (14/4/2026). “They discussed in more depth that the rating, interest payments, compared to income above 15%,” said Purbaya in a written statement. In response to the warning, Purbaya assured that the Indonesian government continues to manage state finances well, while adjusting to community economic activities. Therefore, when Indonesia’s economic growth accelerates, he assured that state revenues will also grow quickly, thereby reducing the debt interest ratio to revenues. “I said we will continue to monitor it and ensure the economic situation remains good and fiscal will remain maintained and not deteriorate in terms of payments,” said Purbaya.