Jakarta. The Indonesian government has raised Rp 501.5 trillion ($30 billion) in new debt as of September 30, 2025, representing 68.6 percent of its annual financing target under the 2025 state budget, Deputy Finance Minister Suahasil Nazara said on Tuesday.

The funds were used to help cover the budget deficit, which reached Rp 371.5 trillion ($22.4 billion), or 1.56 percent of gross domestic product (GDP), by the end of the third quarter.

Indonesia’s total public debt stood at Rp 9,138 trillion ($551 billion) as of June 2025, equivalent to 40 percent of GDP.

Suahasil said the government’s borrowing strategy remains cautious and flexible, aimed at maintaining fiscal stability amid global uncertainty.

“We have realized about 68.6 percent of our total financing target. Debt issuance continues to be carried out prudently, with a focus on risk mitigation and measured execution,” he told reporters in Jakarta.

The Finance Ministry projects Indonesia’s 2025 budget deficit to reach 2.78 percent of GDP, while the realization as of September remains well below that figure.

Suahasil noted that maintaining a moderate deficit is part of the government’s fiscal design, intended to support economic growth through public spending.

“This is by design -- our state budget is meant to spend more than it earns, to stimulate economic expansion,” he said.

The government’s borrowing plan includes both domestic bond issuance and foreign loans, with officials emphasizing a diversified financing approach to minimize exposure to market volatility.

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