Jakarta. Indonesia’s government debt issuance surged in the first half of 2025, reaching Rp 315.4 trillion ($19.5 billion), a 46.9 percent increase compared to the same period last year, according to the Ministry of Finance.

The majority of the new debt came from the issuance of government securities (Surat Berharga Negara or SBN), totaling Rp 308.6 trillion, while direct loans contributed Rp 6.9 trillion.

“This Rp 315.4 trillion in debt issuance represents 40.7 percent of the total debt target set in the 2025 state budget (APBN),” Finance Minister Sri Mulyani Indrawati told lawmakers during a parliamentary budget committee hearing in Jakarta on Tuesday.

The 2025 state budget sets a full-year debt target of Rp 775.9 trillion ($47.9 billion), which consists of Rp 642.6 trillion from government securities and Rp 133.3 trillion from loans.

Sri Mulyani explained that this year’s state budget is designed with a fiscal deficit of 2.53 percent of GDP. The deficit is being financed through measured and cautious debt issuance, taking into account financial market dynamics and the government’s cash position.

“Our cash balance remains healthy and sufficient to support the continuity of government programs amid ongoing global uncertainties,” she said.

As of the first half of 2025, the fiscal deficit stood at Rp 204.2 trillion, equivalent to 0.84 percent of GDP. Meanwhile, government interest payments on debt amounted to Rp 257.08 trillion during the same period.