Debt Financing in the Indonesia's 2026 Draft State Budget Increases

Indonesia's State Budget (APBN) has consistently run a deficit over the past decade, as government spending has consistently exceeded revenue.

To cover this deficit, the government borrows domestically and internationally each year.

Based on the Indonesia's 2026 Draft State Budget, the targeted debt financing for next year's APBN is Rp781.9 trillion.

This figure represents a 9.28% increase compared to the outlook for APBN debt financing in 2025.

The following details the value of debt financing in the APBN for the period 2022-2026:

• 2022: Rp696 trillion
• 2023: Rp404 trillion
• 2024: Rp558.1 trillion
• 2025 (outlook): Rp715.5 trillion
• Draft State Budget 2026: Rp781.9 trillion

According to the Financial Note, the government states that it applies three principles in debt management, namely:

1. Accelerative, utilizing debt as a catalyst for accelerating development and maintaining growth momentum.

2. Efficient, considering debt issuance at minimal cost through the development and deepening of the financial market and diversification of debt instruments.

3. Balanced, maintaining an optimal government debt portfolio balancing minimal cost with an acceptable risk level to support fiscal sustainability.