Debt of Indonesia Rising but Healthy with Public Debt-to-GDP Ratio at 28.7%
Total government debt of Indonesia rose IDR 781 trillion (USD $64.5 billion) between 2009 and 2013 to IDR 2,371.39 trillion (USD $196 billion). This growing outstanding government debt is mainly caused by government loans to finance its State Budgets (APBN) as well as recent sharp rupiah depreciation (as part of this debt is denominated in foreign currencies). In the same period, Indonesia's per capita debt rose from IDR 6.8 million (USD $561) to IDR 8.6 million (USD $710), a 26.4 percent growth.
Despite this significant increase, the debt is manageable and sustainable, evidenced by stable outlooks given by the major credit rating agencies such as Moody's, Standard & Poor's and Fitch Ratings. Indonesia's ratio of public debt to GDP was 28.7 percent at the end of 2013; a healthy ratio compared to most other emerging or developed countries:
| Country | Debt to GDP Ratio |
| Japan | 243% |
| USA | 106% |
| Malaysia | 57% |
| Thailand | 47% |
| Philippines | 41% |
| Indonesia | 28.7% |
Source: Investor Daily
Meanwhile, Indonesia's GDP has also grown from IDR 5,613 trillion (USD $463.9 billion) in 2009 to IDR 9,112 trillion (USD $753.1 billion) in 2013.
Further Reading:
• Analysis of Public Debt of Indonesia
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