Indonesia’s Low Household Debt Looks Good, Until You Ask Why We’re Not Borrowing

Indonesia’s low household debt looks like stability, but is it actually masking deeper economic exclusion and limited credit access?

Indonesia’s household debt-to-GDP ratio, at just 16.46%, ranks among the lowest in Southeast Asia and globally. In comparison, Thailand approaches 91%, Malaysia hovers around 67%, and Singapore sits at 49%. To many observers, this low figure suggests a population that spends cautiously and avoids the financial risks seen elsewhere. On paper, Indonesia a…