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Government Debt Interest Reaches Rp 488 Trillion, Sri Mulyani Promises Caution

Finance Minister Sri Mulyani Indrawati emphasized that she will continue to manage debt prudently and measurably. The State Treasurer assured that she will remain vigilant about the health of the Indonesian government's debt. 

This was stated by Sri Mulyani during a Plenary Session of the Indonesian House of Representatives (DPR RI) with the agenda of "Government Response to the Factions' Views on the Draft Law (RUU) on Accountability for the Implementation (P2) of the State Budget (APBN) for Fiscal Year 2024." 

"The government ensures that the debt profile will continue to be managed prudently and measurably. We will continue to monitor various indicators regarding debt health," said Sri Mulyani at the DPR RI Building, Jakarta, Tuesday (July 15, 2025). 

In a previous plenary session, the National Awakening Party (PKB) and the Prosperous Justice Party (PKS) factions highlighted the increasing government debt-to-GDP ratio, which reached 39.81% by the end of 2024. This figure jumped from 39.21% the previous year. 

The rising debt ratio is considered to have the potential to increase the burden on the State Budget for debt servicing in 2025. This is evident in the 11.04% increase in debt interest payments, from IDR 439.88 trillion in 2023 to IDR 488.43 trillion in 2024. 

This increase in debt interest could impact the realization of spending allocated for public welfare. The increasing portion of debt interest expenditure further narrows fiscal space. 

"The government appreciates the concerns of the PKB and PKS factions regarding the realization of debt interest payment expenditure in 2024, which reached IDR 488.4 trillion," Sri Mulyani responded. 

According to Sri Mulyani, various risks such as debt interest rates, exchange rates, and refinancing will continue to be monitored and remain within safe limits in both the short and medium term. 

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Tag: APBN Draft Law Sri Mulyani Indrawati