Finance Minister Purbaya Yudhi Sadewa stated that the government’s current debt position remains within a very safe range and is being carefully managed. He stated that Indonesia’s debt ratio has been successfully maintained at around 40 percent of Gross Domestic Product (GDP), reflecting the credibility of the national fiscal policy.
“The government’s current debt position remains within very safe limits and is being managed with great care and prudence,” Purbaya said.
Meanwhile, the latest Bank Indonesia data shows that Indonesia’s external debt (ULN) growth slowed in the first quarter of 2026, in line with a declining debt-to-GDP ratio. Indonesia’s external debt stood at USD 433.4 billion, representing only 0.8 percent annual growth, lower than the 1.9 percent growth in the fourth quarter of 2025.
Executive Director of Bank Indonesia’s Communications Department, Ramdan Denny Prakoso, explained that the slowdown in external debt growth was influenced by developments in both the public and private sectors’ debt.
According to Bank Indonesia, the slowdown was primarily influenced by foreign capital inflows into international Government Securities (SBN). This indicates that investor confidence in Indonesia’s economic prospects remains strong.
Ramdan added that the government manages debt carefully, measurably, and accountably to ensure that state funding remains productive and directed toward supporting national priority programs.
“As a financing instrument for the state budget, government external debt is managed carefully, measurably, and accountably, with its utilization continuously directed toward supporting priority government spending and capitalizing on the momentum of economic growth,” he said.
Bank Indonesia also assessed Indonesia’s external debt structure as remaining healthy. This is evident from the external debt-to-GDP ratio, which declined to 29.5 percent in the first quarter of 2026, compared to 30 percent in the previous quarter.
The government considers the success of maintaining a low debt ratio a positive signal for Indonesia’s external stability. With the synergy of disciplined fiscal policy and strict oversight by the Directorate General of Financing and Risk Management (DJPPR), the State Budget is expected to continue to function as a shock absorber, maintaining public purchasing power while strengthening national economic sovereignty.