President Elect Prabowo Must Pay A Debt Interest Of IDR 552.9 Trillion In 2025

Dollars and rupiah (photo: Antara)

The government plans to pay debt interest in 2025 of IDR 552.9 trillion, this figure is up 10.8 percent from the outlook for debt interest payments in the 2024 fiscal year of IDR 499 trillion. This figure does not include principal debt payments.

"The amount consists of paying interest on domestic debt worth IDR 497.62 trillion and paying interest on foreign debt worth IDR 55.23 trillion," the government wrote in the Financial Note II Book document and 2025 RAPBN, quoted on Sunday, August 18.

As for double digits, the growth in debt interest payments in the 2025 fiscal year is lower when compared to the growth in the 2024 fiscal year which is 13.4 percent (of the realization of payments for the 2023 fiscal year).

Meanwhile, the government revealed that the calculation of the amount of debt interest payments for the 2025 fiscal year broadly includes interest payments for outstanding debt originating from the accumulated debt in previous years.

In addition, it also takes into account the debt financing plan for the 2024 and 2025 fiscal years, the plan for the debt portfolio management program (liabilities management).

Furthermore, the calculation of the amount of debt interest payments is also based on several assumptions, such as the rupiah exchange rate against foreign currencies, especially the United States dollar (US$), Japanese yen (JPY), and euro (EUR).

Then, the 10-year SBN interest rate, loan interest rate references, and the assumption of the spread, discounted SBN issuance, and estimated new debt procurement costs.

Meanwhile, the development of debt interest payments in 2025 does not include principal debt payments

For information, seeing the planned expenditure in the 2025 RAPBN of Rp. 3,613.1 trillion, the debt interest expenditure includes 15.3 percent of the total budget. On the other hand, this payment is only debt interest, not including due debt that the government is obliged to pay.

Meanwhile, the Ministry of Finance (Kemenkeu) noted that the maturity profile of government debt in 2025 reached Rp800.33 trillion, consisting of the maturity of Government Securities (SBN) of Rp705.5 trillion and a loan maturity of Rp94.83 trillion. Thus, the next government needs to prepare around Rp1,353.23 trillion to pay principal debt and interest on debt.