Government Budgets Nearly Rp600 Trillion To Pay Debt Interest In 2026

JAKARTA - The government will allocate a budget of around Rp600 trillion to pay debt interest in 2026.

The plan is listed in Book II of the Financial Note and Draft of the 2026 State Revenue and Expenditure Budget (RAPBN).

"In the RAPBN for the 2026 budget year, debt interest payments are planned at IDR 599,440.9 billion, an increase of 8.6 percent from the outlook for debt payments in the 2025 fiscal year," the document quoted.

The budget includes two main components, namely the interest payment of foreign debt of IDR 60.7 trillion, and interest on domestic debt of IDR 538.7 trillion.

Details of this interest payment include coupons for Government Securities (SBN), loan interest, and other costs related to the implementation of the state debt management policy.

As for the outlook for the 2025 fiscal year, next year's debt interest budget will increase by 8.6 percent.

However, this growth rate was recorded to be lower than the increase in the previous year, which reached 13 percent of the realization in 2024.

The document explains that debt interest payments are directed to meet debt interest payments in a timely and precise manner to maintain the credibility of debt management.

Selain itu, mendorong efisiensi bunga utang melalui pengelolaan portofolio yang optimal serta penerbitan utang secara fleksibel dan oportunistis dari sisi size, timing, tenor, mata uang, dan instrumen.

Berikunya untuk mendorong pengembangan dan pendalaman pasar SBN untuk menciptakan pasar SBN yang dalam, aktif, dan likuid.

In addition, encouraging debt interest efficiency through optimal portfolio management as well as flexible and opportunistic debt issuance in terms of size, timing, tenor, currency, and instruments.

He gave it to encourage the development and deepening of the SBN market to create a deep, active, liquid SBN market.