Government Debt Reaches IDR 9,138 Trillion, Purbaya Says Still Within Safe Limits

BOGOR Minister of Finance Purbaya Yudhi Sadive emphasized that government debt which has reached Rp9,138.05 trillion as of June 2025 is still under control and is within safe limits, both by national and international standards.

"Don't use debt to create negative sentiment towards our economy (Indonesia) because there are national and international standards that show our debt is quite prudent," he said in the Media Gathering of the 2026 State Budget, Friday, October 10.

He appealed to the public not only to view the nominal debt, but also to pay attention to the debt-to-gross domestic product (GDP) ratio, which is currently at 39.86 percent and the ratio is still far below the 60 percent safe limit as regulated in Law Number 17 of 2003 concerning State Finance.

"So the reference is not only the nominal value but also the economic ratio. We are safe, still below 40 percent. The German debt is close to 100 percent, the United States is 100 percent more, Japan is 250 percent more. With that standard (international) we (including) are safe," he said.

Purbaya added that the government will gradually reduce debt issuance and ensure that every rupiah from debt proceeds is used optimally to encourage growth and development.

"We will try to reduce debt issuance as optimally as possible. In the sense that even if I am in debt, the maximum use must be done, there should be no leakage that must create economic growth and improve welfare as optimally as possible," he said.

He said the Government was also reviewing the effectiveness of the budget and programs that were deemed inefficient or did not absorb the budget properly, which would be diverted to more productive activities and had a direct impact on the community.

"It doesn't mean I cut government programs but I cut inefficient programs that only waste some of the state's money from debt. This will create more responsible spending going forward," he said.