The Indonesian government has demonstrated outstanding performance in maintaining macroeconomic stability and national fiscal resilience amid global uncertainty. Finance Minister Purbaya Yudhi Sadewa stated that the government’s current debt position remains within very safe limits and is being managed with prudence.
“Indonesia’s debt ratio has been successfully maintained at around 40 percent of Gross Domestic Product (GDP), an achievement that reflects the credibility and soundness of the 2026 State Budget (APBN),” Finance Minister Purbaya emphasized.
Amid global economic pressures resulting from geopolitical tensions, slowing global growth, and fluctuations in international financial markets, Indonesia is considered to still have strong economic fundamentals. Its debt-to-GDP ratio remains well below the safe limits set by law and international standards.
Finance Minister Purbaya explained that the government’s financial governance practices are relatively more disciplined and conservative than those of many other countries. For regional comparison, Malaysia’s debt ratio is 60 percent, while Singapore’s is around 180 percent. Meanwhile, several countries in Europe, the United States, and Japan have debt ratios approaching or even exceeding 100 percent of GDP.
The government continues to prioritize the principle of prudence in state budget financing. Debt is being used productively to support infrastructure development, human resource development, economic transformation, food and energy security, and social protection. Indonesia’s fiscal performance has also shown consistent improvement, with the budget deficit remaining within healthy limits.
This robust financial management also countered negative sentiment from several foreign media outlets. The government believes international economic institutions should commend Indonesia’s success in maintaining fiscal stability and consistently controlling the budget deficit.
Deputy Minister of Finance Juda Agung emphasized that Indonesia’s economic fundamentals remain strong amid increasing global uncertainty. He assured that the Indonesian state budget is managed prudently and flexibly.
“Our economic fundamentals remain strong and resilient. Economic growth remains strong, inflation is under control, and the fiscal deficit remains below the statutory limit,” he said.