Finance Minister Purbaya Yudhi Sadewa stated that the government intends to reduce new debt issuance next year. Instead of relying on additional borrowing, the strategy will focus on driving economic growth supported by higher state revenues.

According to Book II of the State Budget Financial Notes, the target for new debt issuance next year is projected at Rp781.9 trillion.

“Looking ahead, we should no longer be forced to add more debt. I plan to accelerate economic growth, so with the same state budget, we can achieve faster growth and higher tax revenues,” Purbaya said after attending a plenary session at the House of Representatives (DPR RI) in Jakarta on Thursday (Sept 25, 2025).

He emphasized that if Indonesia’s economy can grow at a stronger pace, the government will not need to depend on debt. By creating conditions that enable faster growth, state revenues will naturally increase and become the backbone for financing government spending.

He reiterated:

“Moving forward, we will not be forced to take on more debt, because I will push for faster economic growth. With the same budget framework, we will secure higher growth and greater tax revenues.”

Therefore, he confirmed that the government will no longer excessively delay spending, ensuring that state expenditures stimulate economic activity more effectively.

At the start of his term in September 2025, Purbaya immediately introduced a policy to transfer Rp200 trillion of idle government funds from Bank Indonesia to the banking sector, with the aim of accelerating the circulation of base money (M0).

“I believe that by managing funds properly, ensuring government money does not disrupt economic activity, this alone will significantly boost growth — and automatically strengthen our tax revenues,” he explained.

Purbaya expressed strong confidence that in the future, state revenues will serve as the primary source of financing, reducing reliance on debt. He even calculated that every 1% increase in economic growth could generate roughly Rp220 trillion in additional tax income.

“If my calculation is correct, every 1% growth brings in about Rp220 trillion or more in extra income. With a 0.5% increase, that’s an additional Rp110 trillion. That’s exactly what we will pursue,” he concluded.