Arnoldus Kristianus, Jakarta – The Indonesian government will need to allocate Rp 552.14 trillion (approximately $34 billion) in the 2025 state budget solely to service interest on its public debt, according to projections released by the Finance Ministry on Sunday.

The total consists of Rp 496.98 trillion in domestic interest payments and Rp 55.1 trillion in interest on foreign debt.

"For the second half of 2025, interest payment obligations are projected to reach Rp 295.05 trillion – Rp 261.83 trillion in domestic interest and Rp 33.22 trillion in foreign interest," the ministry said in its fiscal outlook.

A weakened rupiah in the first four months of this year has contributed to rising costs on foreign-denominated debt. However, the currency has shown signs of strengthening over the past two months and is expected to remain relatively stable throughout the second half of 2025.

In the first half of 2025, actual interest payments totaled Rp 257 trillion, accounting for 46.5 percent of the year's target. This marks a 7.1 percent increase compared to the Rp 239.96 trillion spent on interest during the same period in 2024.

Breaking down the first-half figure, Rp 235.15 trillion was used for domestic debt interest and Rp 21.93 trillion for foreign interest payments.

Source: https://jakartaglobe.id/business/debt-servicing-to-cost-indonesia-34-billion-in-2025-budge