By: Andika Saputra
The government is considered successful in maintaining national fiscal sustainability through safe, measured, and prudent debt management amidst the challenges of a still-challenging global economy. Various macroeconomic indicators show that Indonesia’s fiscal condition remains within healthy limits, with manageable debt ratios and budget deficits, and strong economic fundamentals.
This situation is also supported by positive state revenue growth, maintained financial sector stability, and investor confidence in Indonesia’s continued strong economic prospects. These achievements provide crucial capital for the government to maintain economic growth momentum and support sustainable development amid global economic uncertainty.
This assessment was delivered by Abdul Rahman Farisi, Secretary for Economic Policy at the Golkar Party’s Central Executive Board. According to him, Indonesia’s current fiscal condition remains within safe limits based on internationally recognized macro-fiscal indicators. He believes that the measurement of fiscal vulnerability cannot be simplified simply by the narrative of paying old debts with new debts.
Abdul Rahman Farisi explained that in modern fiscal management practices, debt refinancing is a common mechanism employed by many countries. As long as the fiscal ratio is maintained and the country’s repayment capacity remains strong, this step is considered a normal part of state financial management.
According to Abdul Rahman Farisi, Indonesia remains in a relatively healthy position compared to several G20 member countries. The government debt-to-GDP ratio remains below 40 percent, well below the maximum limit of 60 percent stipulated in the State Finance Law. This situation indicates that Indonesia’s fiscal space remains sufficient to support national development.
Furthermore, the state budget deficit to GDP remains below the three percent threshold. This is considered a reflection of the government’s continued fiscal discipline amidst global economic pressures. He explained that the primary balance deficit in early 2026 was influenced by the government’s strategy of accelerating spending in the first quarter to maintain public purchasing power, accelerate priority projects, and support national economic growth.
The primary balance deficit target for 2026 is IDR 89.7 trillion, while as of March it had reached IDR 95.8 trillion. However, Abdul Rahman Farisi assessed that this situation is still manageable, as state revenues historically tend to increase in the second and third quarters, particularly from taxation and domestic economic activity.
Investor confidence in the Indonesian economy is also considered strong. This is reflected in stable demand for Government Securities, high foreign exchange reserves, and continued positive economic growth amid the global economic slowdown. According to Abdul Rahman Farisi, Indonesia’s economic fundamentals remain strong, with controlled inflation, a stable banking sector, and domestic consumption remaining a key driver of national growth.
Therefore, Abdul Rahman Farisi urged all parties to maintain public optimism and deliver constructive, data-based criticism. He believes a disproportionate narrative has the potential to foster distrust in the national economic situation. The former lecturer at the Faculty of Economics and Business at Hasanuddin University also urged the public to remain calm and allow the government, as the fiscal authority, and Bank Indonesia, as the monetary authority, to implement appropriate and measured policies to maintain economic stability.
On the other hand, Purbaya emphasized that Indonesia’s economic condition remains sound. The state budget (APBN) remains stable, with a deficit of 0.70 percent of GDP, and a primary balance surplus of Rp 58.6 trillion. This is a positive indicator of national fiscal sustainability.
The performance of the State Budget (APBN) through the end of May 2026 also showed encouraging progress. State revenues reached Rp1,185 trillion, representing a 19.1 percent year-on-year growth. Meanwhile, realized state spending reached Rp1,365.4 trillion, a 34.4 percent increase compared to the same period the previous year. Strong state revenue growth and expansive spending policies enabled the government to maintain social protection, sustain public purchasing power, and strengthen national economic activity.
Over the past year, the government has also achieved a number of successes in maintaining economic stability. Inflation remained under control, economic growth was maintained on a positive path, investment continued to increase, and various development and social protection programs remained ongoing. Investor confidence has also remained strong, as evidenced by the re-inflow of foreign capital and the stability of the government securities market.
The government is committed to maintaining a healthy, adaptive, and credible state budget (APBN) to strengthen economic stability, maintain growth momentum, and support sustainable development. Prudent debt management and fiscal discipline demonstrate that Indonesia’s economic sustainability remains on a positive path. Therefore, the public is expected to maintain optimism and support the government’s various efforts to achieve inclusive and sustainable economic growth.
*) Academic of Economics and Development