Finance Minister Purbaya Yudhi Sadewa addressed public concerns regarding the perception that the government’s total debt, which has reached IDR 9,138 trillion, may not be repayable.

Purbaya asserted that Indonesia’s total debt as of June 2025 remains within a safe threshold. He explained that the debt-to-GDP ratio is around 40%, which is well below the 60% safety limit set by fiscal policy standards.

“Why are people so worried about debt? If you study fiscal management, you would understand the indicators that determine whether a country is willing or able to pay its debt,” he said during the 100 Economists Forum held in Jakarta, as quoted on Wednesday (Oct 29, 2025).

Purbaya elaborated that credit rating agencies typically assess a country’s fiscal health using two main indicators — the deficit-to-GDP ratio and the debt-to-GDP ratio. Based on these benchmarks, Indonesia’s fiscal position remains very solid.

He also noted that Indonesia’s debt ratio is still far below that of other countries such as the United States (US), which is nearing 100%, and Japan, whose debt level exceeds 250%.

“So, by those measures, we are in a safe position. There’s no need to panic,” he emphasized.

The Ministry of Finance reported that the central government’s total debt stood at IDR 9,138.05 trillion as of June 2025, marking a 0.43% decrease from May 2025, when it reached IDR 9,177.48 trillion.

The Director General of Debt Management and Risk at the Ministry of Finance, Suminto, explained that the government debt-to-GDP ratio for the second quarter of 2025 was 39.86%, showing a slight increase from 39.81% in 2024.

In composition, the total government debt consists of loans and government securities (SBN). Loans amounted to IDR 1,157.18 trillion as of June 2025, an increase from IDR 1,147.95 trillion in May 2025. Of that total, foreign loans accounted for IDR 1,108.17 trillion, while domestic loans amounted to IDR 49.01 trillion.

Meanwhile, the value of government securities (SBN) reached IDR 7,980.87 trillion as of June 2025, down from IDR 8,029.53 trillion in May 2025. Of this amount, rupiah-denominated SBN dominated with IDR 6,484.12 trillion, while foreign currency-denominated SBN stood at IDR 1,496.75 trillion.