Indonesia’s 2026 Budget Financing: A Mid-Year Update

Jakarta – As of February 2026, the Indonesian government’s new debt reached IDR 185.3 trillion, representing 22.3% of the IDR 832.2 trillion debt financing target set for the 2026 state budget (APBN). This figure is lower than the IDR 249.9 trillion recorded in the same period last year, according to the Ministry of Finance.

Budget Financing Remains Controlled

Deputy Minister of Finance Juda Agung affirmed that budget financing for 2026 is being maintained within controlled limits. As of the end of February, the realization reached IDR 185.3 trillion, or 22.3% of the target. Source: Ministry of Finance

Breakdown of Financing Sources

Non-debt financing contributed IDR 21.1 trillion, a significant increase from the IDR 3.9 trillion recorded during the same period last year. Overall budget financing realization in February 2026 totaled IDR 164.2 trillion, or 23.8% of the APBN.

Strategic Financing Approach

Juda Agung explained that the financing strategy is designed to ensure adequate cash availability even as maintaining flexibility to respond to dynamic global financial market conditions. Source: Beritadaerah The government is prioritizing an anticipatory approach to financing.

Strong Investor Interest in State Securities

A significant portion of debt financing is sourced from the issuance of Government Securities (SBN) in the domestic market. Investor interest in SBN remains strong, as evidenced by high bid-to-cover ratios at SBN auctions. The ratio for Government Debt Securities (SUN) is above 2 times, while for Government Sharia Securities (SBSN) it reaches 3.1 times. This indicates continued investor confidence in Indonesia’s economic fundamentals despite global financial uncertainties.

Global Bond Issuance

In February 2026, the government also raised financing through the issuance of global SBN, including bonds denominated in offshore renminbi (CNH) worth 9.25 billion with a yield of around 2-3%, and euro bonds of 2.7 billion euros with a yield of around 4-5%. Juda Agung noted that the yields reflect global investors’ confidence in Indonesia’s economic stability. Source: Asia-Pacific Solidarity Network

Government Debt Position

As of December 31, 2025, the total government debt position reached IDR 9,637.90 trillion, with State Securities (SBN) accounting for 87.02% of the total, amounting to IDR 8,387.23 trillion. The remaining IDR 1,250.67 trillion consists of debt from various loans.

Key Takeaways

• Indonesia’s debt financing as of February 2026 is progressing within target parameters.
• Non-debt financing has shown significant growth compared to the previous year.
• Strong investor demand for SBN indicates confidence in Indonesia’s economic outlook.
• The government is actively diversifying its financing sources through global bond issuances.

Juda Agung was appointed as Vice Minister of Finance based on Presidential Decree Number 3/M of 2026. Source: Setkab