Government Debt Ratio Rises in 2025, Purbaya Reveals Fiscal Remains Safe

Rupiah and US dollar (between)

JAKARTA - Minister of Finance Purbaya Yudhi Sadewa emphasized that the increase in the government's debt ratio to gross domestic product (GDP) to 40.54 percent in 2025 is still at a safe level.

According to him, this condition does not threaten fiscal sustainability or the stability of the State Budget (APBN).

He explained that the government had prepared various strategic steps in managing debt to keep it under control while maintaining fiscal space to support the implementation of national development programs.

Purbaya made this statement in response to the views of the PDI Perjuangan Faction, the Golkar Party Faction, and the PAN Faction regarding the increase in the government's debt ratio in 2025 which reached 40.54 percent of GDP.

Purbaya said that although the debt ratio increased compared to the previous year of 39.81 percent, the figure was still far below the maximum limit of 60 percent of GDP as stipulated in the State Finance Law.

"The government emphasizes that even though the debt ratio increased from 39.81 percent of GDP in 2024 to 40.54 percent of GDP in 2025. This position is still far below the maximum limit of 60 percent of GDP according to the Law, so that our state budget remains safe and under control," he said in a plenary session, Tuesday, July 14.

He added that to maintain fiscal continuity in the future, the government would implement a debt management strategy that focuses on four main pillars.

Purbaya explained that the strategy includes gradual fiscal consolidation to strengthen the primary balance towards a surplus, optimizing state revenues, increasing the effectiveness and quality of government spending, and actively managing the debt portfolio through debt switch, buy back, and loan conversion schemes.

According to him, through this policy, the government is optimistic that the debt ratio can be managed gradually without hindering the financing of various development programs.

"With this strategy, the government is optimistic that the debt ratio will gradually increase while maintaining fiscal sustainability and our development agenda," he said.

Meanwhile, based on the records of the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, the government's debt position until the end of 2025 was recorded at Rp. 9,637.9 trillion or equivalent to 40.46 percent of GDP. This figure is an increase compared to the position in the third quarter of 2025 which was 40.30 percent of GDP.

Of the total debt, around 87.02 percent or IDR 8,387.23 trillion came from the issuance of State Securities (SBN), while the remaining IDR 1,250.67 trillion was government loans.