Indonesia Finance Minister Purbaya Yudhi Sadewa outlines debt, KCIC takeover and fiscal measures

Finance Minister Purbaya Yudhi Sadewa said Indonesia’s total external debt has surpassed Rp 8,000 trillion (about US$ 443 billion) but the debt‑to‑GDP ratio remains around 40 percent, well below the 60 percent safety threshold and supported by a stable BBB sovereign rating. He announced that the government’s acquisition of PT Kereta Cepat Indonesia‑China (KCIC) has been approved and is awaiting administrative completion, noting the transfer will occur from Danantara to his ministry without using the state budget.

Purbaya faced parliamentary questioning over the movement of surplus budget funds (SAL) to state‑owned banks (Himbara) without DPR approval, stating that Bank Indonesia gave him a directive not to intervene in monetary policy and that the placement was not reckless. He also said no decision has been taken on removing tax from Jaminan Hari Tua (JHT) benefits, pending data from BPJS Ketenagakerjaan.

Regarding allegations of price inflation in the procurement of pickup trucks for the Village/Urban Cooperative program, Purbaya stressed that payments will only be made for items that have passed audit and that any irregularities should be addressed with the involved state‑owned enterprises.