Prabowo Subianto plans to take out new debt of Rp 781.9 trillion in the 2026 State Budget—highest since the pandemic. The government ensures that the debt strategy remains cautious, efficient, and supports sustainable development.
President Prabowo Subianto plans to take on new debt amounting to Rp 781.87 trillion in 2026. Debt management is ensured to still pay attention to the principle of caution, prioritizing innovative and sustainable financing.
"In the 2026 State Budget Law, debt financing is planned to be Rp 781.868 billion, which will be fulfilled through the issuance of government securities and loan withdrawals," wrote the document "Book II Financial Statement Notes Along with the 2026 State Budget Law," quoted on Monday (18/8/2025).
In the document, it is explained that the APBN is designed to carry out two main agendas, namely calming the turmoil as well as supporting Development agenda . APBN is designed to implement priority development programs amid increasing economic risks due to global uncertainty.
The government ensures that the 2026 debt management strategy plan can support this agenda. Expansionary fiscal policy is an effort to increase the required fiscal capacity, so that the State Budget (APBN) can support Economic growth "and the achievement of development goals," the document states.
Highest debt since COVID-19
In the document, the debt financing in the last five years is presented as follows: Rp 870.5 trillion in 2021; Rp 696 trillion in 2022; Rp 404 trillion in 2023; Rp 558.1 trillion in 2024; and Rp 715.5 trillion in 2025 (outlook). Then, the plan for debt financing of Rp 781.9 trillion in 2026 was revealed.
It means that the number is the highest since 2021 or the COVID-19 pandemic era, which indeed required significant funding. "The government ensures that debt management is prudent, accountable, and controlled, so that fiscal sustainability can be maintained," the document explained.
It is conveyed that there are three principles of the government in managing debt. First, accelerative by utilizing debt as a catalyst for accelerating development and maintaining the momentum of growth.
Second, efficient by minimizing the cost of debt issuance through the development and deepening of financial markets and diversification of debt instruments. Third, balanced by maintaining an optimal government debt portfolio at the balance between minimal cost and an acceptable level of risk in order to support fiscal sustainability.
As for the 2026 State Budget (RAPBN), it projects a deficit of Rp 638.8 trillion or 2.48% against Gross Domestic Product (GDP). This deficit is due to state spending planned to reach Rp 3,786.5 trillion, which is higher than the targeted state revenue of Rp 3,147.7 trillion.
Read more at detiknews, "Government Plans to Take New Debt of Rp 781.87 Trillion Next Year"
ind:content_author: Detik
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