"The Indonesian government's debt ratio, compared to other G20 countries, is among the lowest," she remarked on Friday.
The minister noted that this is a strong indicator of sustained national economic stability amid global dynamics.
According to data from Bank Indonesia (BI), Indonesia's foreign debt-to-Gross Domestic Product (GDP) ratio in the first quarter of 2025 stood at 30.6 percent.
Indrawati attributed the current economic stability to close coordination between fiscal and monetary policies implemented by the government and Bank Indonesia. This coordination is also reflected in solid economic growth and a controlled inflation rate.
Indonesia's economic growth in the first quarter of 2025 reached 4.87 percent year-on-year (yoy), although it contracted by 0.98 percent quarter-to-quarter (qtq). The minister claimed this growth rate is among the highest in the G20 countries.
Meanwhile, Indonesia's inflation remains relatively low. Last month, inflation was recorded at 0.19 percent (month-to-month/mtm), with annual inflation at 1.87 percent (yoy).
"Our inflation is also among the lowest in ASEAN and the G20, and our foreign exchange reserves reached the highest level in history last March," she explained.
Reflecting on the first eight months of President Prabowo Subianto's administration, the minister stated that fiscal policy has focused on efficiency and strengthening priority programs.
"We continue to implement monetary fiscal policy based on the president's priorities, in this case, focusing on efficiency by reducing ministry and institutional spending and then reallocating funds to new priority programs, which are the president's initiatives," she addressed.
Some of the policies introduced include a 12 percent Value Added Tax (VAT) for luxury goods, economic stimulus to boost public consumption, and effective management of the government transition, which is considered swift and stable, according to Indrawati.
The minister then highlighted several programs initiated by the head of state that directly benefit the community, including the Free Nutritious Meals (MBG) program, securing 4 million tons of rice stock, eliminating bad debts for MSMEs, and establishing 80 thousand Red and White Village Cooperatives.
Related news: Prabowo calls for joint action to maintain economic stability
Translator: Bayu Saputra, Resinta Sulistiyandari
Editor: Primayanti
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