Indonesia's debt-to-GDP ratio remains safe, well below limit: Minister

Jakarta (ANTARA) - Indonesia's finance minister said the country's debt remains within safe limits despite a higher debt-to-GDP ratio, outlining fiscal measures to contain borrowing while sustaining economic growth and development spending.

Finance Minister Purbaya Yudhi Sadewa said the debt-to-GDP ratio rose to 40.54 percent in 2025 from 39.81 percent a year earlier.

"Although the debt ratio increased from 39.81 percent in 2024 to 40.54 percent in 2025, it remains well below the statutory ceiling of 60 percent of GDP," Sadewa told parliament on Tuesday.

Responding to lawmakers' concerns, he said future debt management would focus on strengthening fiscal sustainability through four key policy pillars.

The strategy includes gradually restoring a primary fiscal surplus, increasing state revenue, improving spending efficiency and actively managing debt through switches, buybacks and loan conversions.

"With this strategy, we are confident the debt ratio can be gradually contained while maintaining fiscal sustainability and supporting the development agenda," he said.

Data from the Directorate General of Financing and Risk Management showed government debt stood at Rp9,920.42 trillion (about US$608.6 billion) as of March 31, 2026, equal to 40.75 percent of GDP.

Speaking at a media briefing on May 11, Sadewa said Indonesia's debt management remained more prudent than that of many regional peers.

He said Singapore's debt ratio was about 180 percent and Malaysia's around 60 percent, both higher than Indonesia's.

Indonesia's debt burden also remains lower than that of advanced economies such as the United States and Japan, he added.

"We are among the most prudent compared with countries around us," Sadewa said.

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Translator: Bayu, Kenzu

Editor: Rahmad Nasution

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