August 13, 2026 | 01:06 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa assesses that the government's debt position remains within safe limits relative to the size of the national economy. This is because Indonesia's debt ratio remains far below the maximum limit of 60 percent of Gross Domestic Product (GDP) mandated by the State Finance Law.
"If we look at it, it's still below the 60 percent [threshold], far below. Singapore's [debt] is at 180 percent. So, that's how we see it. If we look at debt or fiscal sustainability, we see it against the size of the economy," said Purbaya at the Ministry of Finance Office in Central Jakarta on Wednesday, August 12, 2026.
His remarks came after reports that state debt reached Rp10,293.69 trillion as of June 30, 2026, accounting for 41.26 percent of GDP. Purbaya added that the mid-year debt figure does not fully capture the fiscal outlook for the rest of 2026.
He stated that the ministry will continue to monitor debt movement through the end of the year, expecting the pace of growth to slow down. He believes that a debt ratio hovering around 40 percent of GDP must be evaluated in proportion to the country’s broader economic footprint.
To curb debt growth, he said, the government will cap the budget deficit to maintain fiscal control. Furthermore, it will increase the effectiveness of tax collection. This effort will not be carried out by raising tax rates, but rather by improving revenue collection mechanisms.
Data from the Finance Ministry’s Directorate General of Budget Financing and Risk Management (DJPPR) showed total government debt at Rp10,293.69 trillion by the end of June 2026. The figure represents an increase of Rp373.27 trillion, or 3.76 percent, from the Rp9,920.42 trillion logged in March 2026.
The DJPPR reiterated that the current state debt ratio remains safely below the 60 percent GDP cap mandated by the State Finance Law. It emphasized that debt management is being handled carefully and systematically to maintain an optimal portfolio while supporting the development of the domestic financial market.
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