Bisnis, JAKARTA — President-elect Prabowo Subianto is reportedly planning to raise government debt ratio to nearly 50 percent of gross domestic product (GDP) by the end of his incoming term in 2029.
As of end of April 2024, state debt amounted to IDR 8,338.43 trillion (38.64 percent of GDP). This figure has increased by 10 percent over President Joko “Jokowi” Widodo’s two terms in office.
According to international consensus, later adopted by Law No. 17/2003 on state finances, sets 60 percent debt-to-GDP as the safe limit.
Statistics Indonesia recorded GDP at IDR 20,892.4 trillion by the end of 2023. With the assumption of an annual GDP growth of 5 percent, GDP would reach IDR 26,664.6 trillion by the end of 2029. This puts government debt, with Prabowo’s 50 percent debt-to-ratio, at IDR 13,332.3 trillion by the end of his term.