February 19, 2026 | 08:24 am
TEMPO.CO, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa confirmed that the Indonesian government's debt position remains within safe limits, despite increasing nominal amounts. As of December 31, 2025, total government debt was recorded at Rp9,637.90 trillion, equivalent to 40.46 percent of Gross Domestic Product (GDP).
Finance Minister Purbaya then compared Indonesia's debt ratio with several regional countries. Malaysia's debt ratio was recorded at around 64 percent of GDP in 2025.
Thailand's debt ratio was around 63.5 percent. Meanwhile, Singapore recorded a much higher debt ratio, around 165-170 percent of GDP. "By that standard, we are still safe," Purbaya said, as quoted by Antara, Thursday, February 19, 2026.
He also emphasized that the budget deficit will remain below 3 percent of Gross Domestic Product. According to him, the government is deliberately utilizing the available deficit space to encourage economic recovery and turnaround.
"So, our strategy is to maximize the existing deficit to ensure the economy turns around. That's actually a very smart strategy. We won't exceed the 3 percent deficit, we'll expand fiscally, provide stimulus to the economy, and the economy will recover," he said.
Meanwhile, throughout 2025, the 2025 State Budget (APBN) deficit was recorded at Rp695.1 trillion, or 2.92 percent of GDP.
He considered this approach the right step to maintain growth momentum without exceeding the limits of fiscal discipline. The government, Purbaya continued, does not want to rashly adopt policies that risk suppressing purchasing power and sending the economy into a downward spiral.
Read: Prabowo to Meet American Business Leaders in Washington
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