<![CDATA[Since the reform era, foreign debt has contributed to Indonesia's economic growth. However, new borrowing exceeding the country's repayment capacity has resulted in the national debt reaching Rp9,920.42 trillion by 2026, accompanied by a debt wall of Rp833.96 trillion. This normative legal research, using legislative and conceptual approaches, analyzes the legal regulations for managing state debt and the state budget deficit, and their implications for the principles of prudence and intergenerational equity. The results show that the legal framework for state debt, from the 1945 Constitution of the Republic of Indonesia, the State Finance Law (limiting deficit at 3% and debt at 60% of GDP), to the State Treasury Law and the Government Securities Law, contains normative gaps due to the lack of effective enforcement mechanisms, resulting in aspirational fiscal limits. This condition creates a self-reinforcing cycle of debt, narrowing fiscal space, and placing a disproportionate burden on future generations, contrary to the ideals of intergenerational equity. This study recommends amendments to the State Finance Law, including binding legal sanctions and the establishment of an independent fiscal oversight body.]]>
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