As an effect of the economic crisis in 1997-1998 the Government of Indonesia has issued 650.000 billion rupiah of government bonds to restructure banks. These bonds called recapitalization bonds. Problems surface when the maturity date of bonds ia in 2004 to 2009. That will burden the state budget (APBN). To overcome that problem the Government of Indonesia implements the Debt Switching Policy the state budget (APBN) and to comprehend the economy and politic phenomenon in formulating that policy.