Jakarta. Finance Minister Purbaya Yudhi Sadewa has assured that Indonesia’s government debt remains within a safe threshold, even as the debt-to-gross domestic product (GDP) ratio reached 40.46% at the end of 2025.

As of Dec. 31, 2025, total government debt stood at Rp 9.63 quadrillion, equivalent to 40.46% of GDP. Purbaya said the ratio remains manageable compared with regional peers.

Malaysia’s debt ratio was recorded at around 64% of GDP in 2025, while Thailand’s stood at roughly 63.5%. Singapore’s debt level was significantly higher, ranging between 165% and 170% of GDP.

“How much is Singapore? 100%. How much is Malaysia? 60%. How much is Thailand? Based on those standards, we are still safe,” Purbaya said at the parliamentary complex in Senayan, Jakarta, on Wednesday.

He emphasized that the government continues to maintain fiscal discipline by keeping the state budget deficit below the 3% of GDP ceiling. Throughout 2025, the deficit was recorded at Rp 695.1 trillion, or 2.92% of GDP.

According to Purbaya, the measured widening of the deficit was aimed at supporting national economic recovery after a period of weakening.

“So our strategy is to maximize the existing deficit to ensure the economy turns around,” he said.

He added that fiscal expansion remains a crucial instrument to keep the economy moving. Without stimulus and deficit space, economic growth would likely have struggled to reach 5.11% in 2025.

“We did not exceed 3%, we carried out fiscal expansion, provided stimulus to the economy, and the economy recovered,” he said.

Purbaya described the approach as appropriate because the government continues to balance growth support with fiscal health. He stressed that policymakers do not want to adopt measures that would suppress purchasing power or slow the recovery.

“With that strategy, the economy can be turned around without breaching fiscal limits,” he concluded.

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