TEMPO.CO, Jakarta - International rating agency S&P Global Ratings has raised concerns over Indonesia’s government debt interest payments relative to revenue, which have exceeded 15 percent.
The warning was delivered to Finance Minister Purbaya Yudhi Sadewa during a meeting in Washington DC, United States, on Tuesday, April 14, 2026.
Following the meeting, Purbaya said S&P highlighted the issue in its assessment. “They issued a warning, noting in more detail that interest payments compared to revenue have exceeded 15 percent,” he said in a statement quoted on Saturday, April 18, 2026.
This year, Indonesia’s debt interest payments are approaching Rp600 trillion, with Rp599.5 trillion allocated in the 2026 state budget. This is higher than Rp552.1 trillion in 2025 and Rp488.4 trillion in 2024.
Several institutions, including S&P, generally consider a safe ratio of debt interest payments to state revenue to be below 15 percent. Based on Indonesia’s projected revenue of Rp3,153.9 trillion and interest payments of Rp599.5 trillion, the ratio has reached around 19 percent.
This means nearly one-fifth of state revenue is used solely to service debt interest. The ratio has also increased from 18.38 percent in the previous year.
In addition to interest payments, the government is also set to repay around Rp800 trillion in maturing principal debt this year. This pushes the overall debt service ratio (DSR) higher.
Paramadina University economist Wijayanto Samirin said rising geopolitical tensions that have pushed up global energy prices, along with a weakening rupiah, are contributing to higher debt servicing costs. He noted that around 25 percent of Indonesia’s debt is denominated in foreign currency, particularly US dollars.
“This will increase both interest and principal repayment costs in rupiah terms. I estimate the debt service ratio could rise from 49 percent to 51 percent if the dollar remains at around Rp17,000,” he said.
As of December 2025, Indonesia’s total government debt stood at Rp9,637.9 trillion, equivalent to 40.46 percent of gross domestic product (GDP). The debt consists of Rp8,387.2 trillion in government securities and Rp1,250.6 trillion in loans.
