Indonesia’s Debt Hits IDR10.293 Trillion

KN. Finance Minister Purbaya Yudhi Sadewa said that the government will limit the fiscal deficit and optimize tax revenue to reduce government debt, which rose sharply in mid-2026.

Government debt reached IDR 10,293.69 trillion ($630 billion) as of June 2026, equivalent to 41.26 percent of GDP, up IDR 373.27 trillion ($20.88 million), or 3.76 percent, from IDR 9,920.42 trillion ($555.13 billion) in March 2026.

Purbaya said the debt-to-GDP ratio remains within a safe range, with the State Finance Law setting the ceiling at 60 percent of GDP. He also outlined strategies to ease the debt burden, including improving tax collection and using part of sovereign wealth fund Danantara’s profits as government reserves, following President Prabowo’s direction.

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