Indonesia's government added IDR 477 trillion to its national debt in H1 2026, primarily to fund a 24.8% surge in civil servant spending, including 355,000 new hires, THR, and 13th-month salaries. This led to a IDR 196.5 trillion deficit.
Indonesia's fuel subsidies soared to Rp 116 trillion by mid-2026, driven by increased consumption and global energy volatility. This significant spending aims to stabilize domestic prices and protect citizens.
