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A Rising Risk of Fiscal Crisis in 2026

Monday, December 22, 2025

Indonesia’s 2026 fiscal risk lies in a widening credibility gap between heavy borrowing needs and fading investor confidence. Restoring foreign demand for government bonds is urgent.

arsip tempo : 177040354938.

Illustration: Tempo/Lukmannul Hakim. tempo : 177040354938.

AS Indonesia approaches the turn of the year, policymakers would be wise to pause and confront a looming challenge. In 2026, government finances are set to face severe pressure. There is a growing risk that this strain could escalate into a fiscal crisis, with spillover effects across the broader economy.

The arithmetic is stark. To finance next year’s budget deficit, the government will need to borrow again on a very large scale. Acc

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