BI Records Foreign Debt Slowing to USD431.9 Billion in August 2025

Key Points

• Indonesia’s foreign debt grew slowly to USD431.9 billion in August 2025, only up 2 percent (yoy) from 4.2 percent in July.

• Government foreign debt is dominated by long-term debt (99.9 percent) with growth slowing to 6.7 percent yoy, while private foreign debt is still contracting by 1.1 percent.

• The ratio of foreign debt to GDP remains stable at 30 percent, indicating that Indonesia’s debt structure is still healthy and is being managed carefully by BI and the government.

Jakarta – Bank Indonesia (BI) recorded a slowdown in Indonesia’s foreign debt growth. Indonesia’s external debt position in August 2025 was recorded at USD 431.9 billion or equivalent to IDR 7,161 trillion (assuming an exchange rate of IDR 16,580/USD), or a 2.0 percent growth year-on-year, lower than the 4.2 percent growth yoy in July 2025.

Head of the BI Communication Department, Ramdan Denny Prakoso, said that this slowdown was mainly due to a decline in public sector external debt growth and a contraction in private sector external debt.

Meanwhile, government external debt in August 2025 was recorded at USD 213.9 billion, growing 6.7 percent yoy, which was slower than the 9.0 percent yoy growth in July 2025.

“This development was mainly influenced by the slowdown in the growth of foreign capital inflows into Government Securities (SBN) amid continued high global financial market uncertainty,” Denny said in his statement on Wednesday, October 15, 2025.

Denny explained that external debt, as one of the financing instruments for the State Budget (APBN), is managed carefully, measurably, and accountably. Its use is directed at supporting priority programs that promote sustainability and strengthen the national economy.

Based on economic sectors, government ULN is used for:

• Health services and social activities: 23.4 percent of total government ULN,

• Education services: 17.2 percent

• Government administration, defense, and mandatory social security: 15.7 percent

• Construction: 12.3 percent

• Transportation and warehousing: 9.0 percent

• Financial and insurance services: 8.0 percent

“The government’s external debt position is dominated by long-term debt, which accounts for 99.9 percent of the total government external debt,” he added.

Private External Debt Continues to Contract

Meanwhile, private external debt continued to contract. Private external debt stood at USD 194.2 billion, contracting 1.1 percent yoy in August 2025, deeper than the 0.2 percent yoy contraction in July.

According to Denny, this contraction originated from non-financial corporations’ external debt, which contracted by 1.6 percent yoy, and financial corporations’ external debt, which slowed to 0.8 percent yoy.

“Based on economic sectors, the largest private external debt came from the manufacturing, financial and insurance services, electricity and gas supply, and mining and quarrying sectors, with a share of 81.2 percent of total private external debt,” he said.

External Debt Structure Remains Healthy

Denny emphasized that Indonesia’s external debt structure remains healthy, supported by the principle of prudence in its management.

This is reflected in Indonesia’s external debt ratio to Gross Domestic Product (GDP) of 30.0 percent in August 2025, relatively stable with July 2025 at 29.9 percent, as well as the dominance of long-term external debt with a share of 85.9 percent of total external debt.

To maintain a healthy external debt structure, BI and the government continue to strengthen coordination in monitoring external debt. The role of external debt will also continue to be optimized to support development financing and drive sustainable national economic growth.

“These efforts are carried out by minimizing risks that could affect economic stability,” Denny concluded. (*)

Editor: Yulian Saputra

Translated with DeepL.com (free version)

BI Records Foreign Debt Slowing to USD431.9 Billion in August 2025

Key Points

• Indonesia’s foreign debt grew slowly to USD431.9 billion in August 2025, only up 2 percent (yoy) from 4.2 percent in July.

• Government foreign debt is dominated by long-term debt (99.9 percent) with growth slowing to 6.7 percent yoy, while private foreign debt is still contracting by 1.1 percent.

• The ratio of foreign debt to GDP remains stable at 30 percent, indicating that Indonesia’s debt structure is still healthy and is being managed carefully by BI and the government.

Jakarta – Bank Indonesia (BI) recorded a slowdown in Indonesia’s foreign debt growth. Indonesia’s external debt position in August 2025 was recorded at USD 431.9 billion or equivalent to IDR 7,161 trillion (assuming an exchange rate of IDR 16,580/USD), or a 2.0 percent growth year-on-year, lower than the 4.2 percent growth yoy in July 2025.

Head of the BI Communication Department, Ramdan Denny Prakoso, said that this slowdown was mainly due to a decline in public sector external debt growth and a contraction in private sector external debt.

Meanwhile, government external debt in August 2025 was recorded at USD 213.9 billion, growing 6.7 percent yoy, which was slower than the 9.0 percent yoy growth in July 2025.

“This development was mainly influenced by the slowdown in the growth of foreign capital inflows into Government Securities (SBN) amid continued high global financial market uncertainty,” Denny said in his statement on Wednesday, October 15, 2025.

Also read: Finance Minister Purbaya Promises to Reduce Debt: No Leaks Allowed!

Denny explained that external debt, as one of the financing instruments for the State Budget (APBN), is managed carefully, measurably, and accountably. Its use is directed at supporting priority programs that promote sustainability and strengthen the national economy.

Based on economic sectors, government ULN is used for:

• Health services and social activities: 23.4 percent of total government ULN,

• Education services: 17.2 percent

• Government administration, defense, and mandatory social security: 15.7 percent

• Construction: 12.3 percent

• Transportation and warehousing: 9.0 percent

• Financial and insurance services: 8.0 percent

“The government’s external debt position is dominated by long-term debt, which accounts for 99.9 percent of the total government external debt,” he added.

Private External Debt Continues to Contract

Meanwhile, private external debt continued to contract. Private external debt stood at USD 194.2 billion, contracting 1.1 percent yoy in August 2025, deeper than the 0.2 percent yoy contraction in July.

According to Denny, this contraction originated from non-financial corporations’ external debt, which contracted by 1.6 percent yoy, and financial corporations’ external debt, which slowed to 0.8 percent yoy.

“Based on economic sectors, the largest private external debt came from the manufacturing, financial and insurance services, electricity and gas supply, and mining and quarrying sectors, with a share of 81.2 percent of total private external debt,” he said.

External Debt Structure Remains Healthy

Denny emphasized that Indonesia’s external debt structure remains healthy, supported by the principle of prudence in its management.

This is reflected in Indonesia’s external debt ratio to Gross Domestic Product (GDP) of 30.0 percent in August 2025, relatively stable with July 2025 at 29.9 percent, as well as the dominance of long-term external debt with a share of 85.9 percent of total external debt.

To maintain a healthy external debt structure, BI and the government continue to strengthen coordination in monitoring external debt. The role of external debt will also continue to be optimized to support development financing and drive sustainable national economic growth.

“These efforts are carried out by minimizing risks that could affect economic stability,” Denny concluded. (*)

Editor: Yulian Saputra