Is Indonesia's Rp10,293 Trillion Debt Still Safe? Purbaya Responds

Finance Minister Purbaya Yudhi Sadewa has stated that Indonesia's staggering Rp10,293 trillion debt remains safe due to its small size relative to the national economy. According to Purbaya, the debt ratio remains far below the 60 percent threshold mandated by the State Finance Law, with Singapore serving as a benchmark at 180 percent. The Finance Minister emphasized that assessing debt requires looking at its size against the economy, highlighting that Indonesia's debt is a fraction of Singapore's.

The state debt figure reached Rp10,293.69 trillion as of June 30, 2026, accounting for 41.26 percent of GDP. Purbaya clarified that this figure does not fully represent the fiscal outlook for the remainder of 2026. He assured that his ministry will continuously monitor debt movements until the end of the year, anticipating a gradual decrease in the pace of growth. Purbaya believes that a debt ratio around 40 percent of GDP should be evaluated in context with the country's larger economic footprint.

To address debt growth, Purbaya hinted at measures such as capping the budget deficit to retain fiscal control, along with enhancing tax collection effectiveness. Notably, the Finance Minister noted that these steps won't involve tax rate hikes but rather improvements in revenue collection mechanisms. Data from the Finance Ministry's Directorate General of Budget Financing and Risk Management (DJPPR) confirmed that total government debt stood at Rp10,293.69 trillion by June 2026, a 3.76 percent increase from Rp9,920.42 trillion recorded in March 2026.

The DJPPR reiterated that the debt ratio remains well within the safe limit set by the State Finance Law, underscoring that debt management is carried out meticulously to uphold fiscal health and bolster the domestic financial market.