Anthony Budiawan said the APBN was suffocated by debt flowers, the area was forced to squeeze the people through the United Nations

FAJAR.CO.ID, JAKARTA-Managing Director of Political Economy and Policy Studies (PEPS), Anthony Budiawan, emphasized that Indonesia is now really entering a critical period.

Anthony said, the fiscal crisis was in front of his eyes and was ridden to trigger social uproar in various regions.

Anthony said, the increase in land and building tax (PBB) simultaneously in many districts and cities is not an ordinary phenomenon.

“This very high and unnatural regional tax increase cannot be seen as trivial. This reflects state finances in critical condition,” Anthony told Fajar.co.id, Wednesday (8/20/2025).

Furthermore, he considered the steps of the central government, especially the Ministry of Finance, tend to be off.

Instead of resolving the root of fiscal problems, Sri Mulyani is said to have encouraged the region to seek their own income after the transfer of funds to the regions was deducted by Rp50.5 trillion in February 2025.

“What is more dangerous, the national fiscal crisis is diverted into regional problems. In fact, the impact can trigger political and social instability below,” said Anthony.

He revealed, the surge in state debt for ten years of Jokowi and Sri Mulyani’s governments became the root of the problem.

Government debt, said Anthony, rose dramatically from Rp2,609 trillion in 2014 to Rp8,680 trillion at the end of 2024.

The surge automatically makes the debt flower expense swell four times, to press the APBN.

“Tax revenue is now drained only to pay debt interest. Nearly a quarter of government tax revenue is used up for that,” he explained.