JAKARTA, The Shiro Corp – The government is preparing a large budget to pay interest on debt in 2026.
The total allocated funds reached Rp 599.44 trillion, an increase of 8.6 percent compared to the 2025 debt interest payment outlook.
Meanwhile, the budget is recorded in the 2026 State Budget Revenue and Expenditure Draft (RAPBN).
Based on the Financial Statement along with RAPBN 2026, the budget prepared by the government, mostly or equivalent to Rp 538.70 trillion, is allocated to pay for domestic debt interest.
Meanwhile, Rp 60.73 trillion was used for foreign debt interest.
"In the 2026 State Budget Law, debt interest payments are planned to be Rp 599.44 trillion, an increase of 8.6 percent from the outlook for debt interest payments in the fiscal year 2025," said the Financial Statement along with the 2026 RAPBN, quoted on Monday (18/8/2025).
Although it has increased, the growth of interest payments in 2026 is lower than the previous year, which surged by 13 percent compared to the 2024 realization.
Debt service includes payments of coupons on Government Securities (SBN), loan interest, as well as other costs arising from the debt management program.
The amount of debt interest payments is greatly influenced by various factors, ranging from fluctuations in the exchange rate of the rupiah against foreign currencies, changes in interest rates, to market sentiments towards SBN and the conditions of the global and domestic economy.
The government emphasized that the debt interest payment strategy was carefully designed with the principle of fiscal caution.
Debt management policy is aimed at keeping costs efficient without compromising long-term fiscal stability.
The debt portfolio structure will continue to be optimized, both in terms of maturity and instrument type, to avoid being too vulnerable to market fluctuations.
To support efficiency, the government also promotes the development of the domestic financial market through deepening the SBN market.
This step is taken by expanding the investor base, strengthening communication with market players, and introducing new instruments that meet the needs of investors.
In addition, market infrastructure will be strengthened through the utilization of electronic trading platforms, optimization of the role of distribution partners, and improvement of joint governance with relevant authorities.
With this strategy, the government hopes that debt interest payments are not only a routine burden, but also an important instrument in maintaining the country's financial credibility and investor confidence in the Indonesian SBN market.
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