In our daily lives, we have surely heard the word 'debt' more than once. UNDIRA Friends, debt itself is a form of repayment obligation by a person (the borrower) to the lender, in the form of money or goods that have been borrowed for a specific period. Furthermore, generally in various financial institutions (both bank and non-bank), debt is usually accompanied by interest or additional fees.

Recently, UNDIRA Friends have likely heard various discourses related to debt, especially debt in Indonesia. Quoted from CNBC Indonesia, our country's debt in the second quarter of 2025 or as of late June has reached approximately 9.1 Trillion Rupiah, or equivalent to 39.86% of the total value of all goods and services.

According to the Director-General of Financing and Risk Management of the Ministry of Finance, Suminto, this level is still relatively lower compared to several other countries in Southeast Asia, such as Malaysia with a percentage of 61.9% and India at 84.3%.

Debt is currently very easy to obtain, especially with the accessibility offered by gadgets and the Internet of Things (IoT) through various applications such as; paylater, Kredivo, etc. However not many people are using it correctly nor are aware of its long term potential and also planning on what to do with said debt.

Currently, debt has different perceptions among the public, but in general, debt always refers to something bad that must be avoided. Referring to the current perception of debt, one of the lecturers at Dian Nusantara University (UNDIRA), Mrs. Sigit Mareta, SE., M.Ak., also provides a good explanation of the concept and how debt can be beneficial.

However, at the same time, the ease of borrowing money provided by technology and the IoT is prone to misuse. This can backfire, especially on the younger generation who tend to be prone to consumptive lifestyles, Fear of Missing Out (FOMO), You Live Only Once (YOLO), and Instant Gratification.

Mrs. Sigit Mareta explained that debt is not truly an enemy. Debt is fundamentally an opportunity if utilized well; for instance, to open a business after its prospectus and surrounding market conditions have been studied, the capital obtained from a bank loan can certainly provide a head start.

“In truth, debt is not an enemy; rather, debt is an asset that must be managed well. Therefore, we must be able to choose wisely how to use the debt we have applied for, dedicating it to positive, valuable, and productive needs. Essentially, don't let debt installments control your life; you must be able to manage your own finances.” she stated.

Furthermore, debt can also be a form of emergency fund that can be managed and even provide a worthwhile return on investment (RoI).

The explanation from Mrs. Sigit Mareta, SE., M.Ak., underscores one crucial thing: debt is a tool. Debt can be a golden 'opportunity' for economic acceleration, business, and livelihood, but it can also be a fatal 'mistake' that leads to ruin. The differentiator is smart and responsible management and financial literacy.

This is why understanding accounting and financial management is so vital. Both on a personal scale to build productive assets and emergency funds, and on a national scale to finance infrastructure development, the ability to manage debt wisely is the primary foundation for economic progress. As Mrs. Sigit said, we must be able to "manage our own finances," not be ruled by installments.

The Accounting Study Program at Dian Nusantara University (UNDIRA) is the right place for you. We not only teach theory but also equip you with the practical skills to become a financially wise professional. Come join UNDIRA and be part of the solution for a brighter financial future!