Jakarta. Finance Minister Purbaya Yudhi Sadewa dismissed concerns over Indonesia's rising external debt after it reached $444.4 billion (Rp 8,029 trillion) in May, saying the country's debt remains at a safe level when measured against the size of the economy.

"We always compare debt with the size of the economy, not just the nominal amount," Purbaya told reporters at the Presidential Palace in Jakarta on Wednesday.

Purbaya said Indonesia's debt-to-GDP ratio remained comfortably below the 60% reference value under the Maastricht Treaty, the European Union's fiscal framework.

"We're still at around 40%, so we're well below that limit," he said.

He argued that a country's economic capacity is the key indicator of its ability to manage debt, noting that several advanced economies carry much higher debt burdens. According to Purbaya, the United States has a debt-to-GDP ratio exceeding 100%, Singapore around 175%, Germany above 60%, and Japan roughly 275%.

Purbaya pointed to S&P Global Ratings' decision to maintain Indonesia's BBB sovereign credit rating with a stable outlook, saying the assessment reflects confidence in the government's fiscal management despite domestic criticism.

"That's why S&P maintained our BBB rating with a stable outlook. They look at how we manage the budget. Even though there's been a lot of debate domestically, our fiscal management is actually strong," he said.

He added that if Indonesia's debt repayment capacity had weakened, rating agencies would have already revised the country's outlook or downgraded its credit rating.

"If they believed we couldn't meet our obligations, the outlook would have turned unstable or negative, or we would have already been downgraded," Purbaya said.

Earlier, Bank Indonesia reported that the country's external debt rose to $444.4 billion in May from $439.8 billion in April. On an annual basis, external debt grew 2.1% from $435.6 billion in May 2025.

The increase was driven mainly by higher external borrowing by the public sector, including the government and the central bank, while private-sector external debt continued to contract, although at a slower pace.