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Indonesia’s Debt Interest Payments Exceed Social Protection Budget

Arnoldus Kristianus
August 18, 2026 | 11:28 pm
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President Prabowo Subianto, right, delivers a speech during the annual session of the People's Consultative Assembly (MPR) at the legislature compound in Jakarta, Friday, Aug. 14, 2026. Behind him are, from left, MPR Speaker Ahmad Muzani, House Speaker Puan Maharani, and Regional Legislative Council Speaker (DPD) Sultan Bachtiar Najamudin. (Antara Photo/Fauzan)
President Prabowo Subianto, right, delivers a speech during the annual session of the People's Consultative Assembly (MPR) at the legislature compound in Jakarta, Friday, Aug. 14, 2026. Behind him are, from left, MPR Speaker Ahmad Muzani, House Speaker Puan Maharani, and Regional Legislative Council Speaker (DPD) Sultan Bachtiar Najamudin. (Antara Photo/Fauzan)

Jakarta. A senior politician from the Indonesian Democratic Party of Struggle (PDI-P) has raised concerns over the government’s allocation of Rp 650.3 trillion ($36.4 billion) for debt interest payments, an amount exceeding spending on social protection, subsidies, and government employee salaries.

The planned allocation represents an 11.7% increase from the 2026 outlook for debt interest payments.

“Spending on debt interest payments of Rp 650.3 trillion exceeds the budgets for social protection, subsidies, government employee spending, and other expenditure items,” House of Representatives member Budi Sulistyono said during a plenary session in Jakarta on Tuesday.

The projected interest payments comprise Rp 589.6 trillion for domestic debt and Rp 60.63 trillion for foreign debt.

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The obligations include coupon payments on government securities, interest on loans, and other expenses associated with the government’s debt management program.

Budi said the debt interest bill is substantially larger than several other major spending allocations, including Rp 548.9 trillion for social protection, Rp 295.2 trillion for capital expenditure, and Rp 151.48 trillion for social assistance.

House Speaker Puan Maharani previously urged the government to manage the deficit and public debt prudently, carefully, and responsibly in preparing the 2027 state budget.

“Policies adopted today must not leave an unfair burden for future generations,” said Puan, who is also a senior PDI-P politician.

Government debt stood at Rp 10,293.69 trillion ($575.8 billion) at the end of the first half of this year, up 12.65% year-on-year, according to Finance Ministry data.

The debt was equivalent to 41.26% of Indonesia’s gross domestic product (GDP), remaining below the statutory ceiling of 60%.

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