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Jakarta – The Indonesian government largely met its financing goals for the 2025 budget, securing approximately $47.8 billion in debt as of december 31, according to recent figures released by the Ministry of Finance. While debt financing reached 94.9% of its target, non-debt financing fell slightly short, resulting in overall budget financing exceeding initial projections by a significant margin. The data offers a snapshot of the country’s fiscal health as Southeast Asia’s largest economy continues its transition toward greater industrialization and service-sector growth [[1]].
JAKARTA – Indonesia’s government secured approximately $47.8 billion in debt financing throughout 2025, representing 94.9% of its target for the 2025 state budget, according to a recent announcement by Deputy Finance Minister Thomas Djiwandono.
The financing was achieved through the issuance of Government Securities (SBN) and loans, though the Ministry of Finance did not disclose the specific breakdown of each instrument. “As of December 31, debt financing reached Rp 736.3 trillion, or 94.9 percent of the State Budget target,” Djiwandono stated during a press conference on Thursday, January 8, 2026.
The substantial borrowing underscores the government’s reliance on debt to fund its programs and manage its fiscal obligations. Despite the significant amount, officials emphasized that the debt was acquired prudently and with careful consideration to minimize costs and manage risks.
Non-debt financing, however, fell short of expectations, totaling Rp 7.7 trillion, which is 4.9% below the target set in the 2025 state budget.
Overall, total budget financing reached Rp 744 trillion, exceeding the initial target of Rp 616.2 trillion by 120.7%. These funds were allocated to cover the budget deficit, finance government investments, and manage state cash flow.
The government also strategically placed excess budget funds, known as the Budget Surplus (SAL), in the banking system to optimize cash management. Throughout 2025, a total of Rp 276 trillion was deposited in two phases – Rp 200 trillion on September 12 and Rp 76 trillion on November 12. To date, the government has withdrawn Rp 75 trillion from these deposits.
Djiwandono noted that this approach proved effective in lowering banking funding costs, which ultimately contributed to lower interest rates. Additionally, liquidity in the financial markets improved, fostering market activity and enhancing the efficiency of economic financing.
As of December 31, 2025, Indonesia’s budget deficit stood at Rp 695.1 trillion, or 2.92% of Gross Domestic Product (GDP). This figure is wider than the initial target of 2.53% and the mid-year projection of 2.78%, nearing the legal limit of 3%.
State revenue reached Rp 2,756.3 trillion, representing 91.7% of the Rp 3,005.1 trillion target for 2025. Government spending totaled Rp 3,451.4 trillion, or 95.3% of the Rp 3,621.3 trillion target.
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