Indonesia's External Debt Decreases 0.6%, Remaining at USD 424.3 Billion

Jakarta: Indonesia's external debt in the third quarter of 2025 was recorded at USD424.4 billion, down from USD432.3 billion in the second quarter of 2025.

Executive Director of the Bank Indonesia Communications Department, Ramdan Denny Prakoso, stated that on an annual basis, Indonesia's external debt contracted 0.6 percent (yoy) in the third quarter of 2025, down from the 6.4 percent (yoy) growth in the second quarter of 2025.

"This development was influenced by the slowdown in public sector external debt growth and the contraction in private sector external debt," explained Denny, as quoted in a written statement on Monday, November 17, 2025.

Government external debt growth slowed.

The government external debt position in the third quarter of 2025 was recorded at USD 210.1 billion, representing an annual growth of 2.9 percent (yoy), slowing compared to the 10.0 percent (yoy) growth in the second quarter of 2025.

This development was primarily influenced by the contraction in foreign capital inflows into domestic Government Securities (SBN) amidst persistently high global financial market uncertainty.

As a financing instrument of the State Budget (APBN), external debt is managed carefully, measurably, and accountably, and its utilization continues to be directed to support the financing of priority programs that promote the sustainability and strengthening of the national economy.

Based on economic sectors, government external debt is used to support the Health Services and Social Activities Sector (23.1 percent of total government external debt), Government Administration, Defense, and Mandatory Social Security (20.7 percent), Education Services (17.0 percent), Construction (10.7 percent), Transportation and Warehousing (8.2 percent), and Financial Services and Insurance (7.5 percent).

"The government external debt position is dominated by long-term debt, accounting for 99.9 percent of total government external debt," explained Denny.

Private External Debt: USD191.3 Billion

Meanwhile, private external debt was recorded at USD191.3 billion in the third quarter of 2025, lower than the USD193.9 billion position in the second quarter of 2025. On an annual basis, private external debt continued its growth contraction, from a 0.2 percent (yoy) contraction in the previous quarter to 1.9 percent (yoy).

This development was influenced by the external debt of financial institutions (financial corporations), which contracted by 3.0 percent (yoy) and non-financial corporations, which contracted by 1.7 percent (yoy).

By economic sector, the largest private external debt came from the Manufacturing Industry; Financial Services and Insurance; Electricity and Gas Supply; and Mining & Quarrying sectors, with a share of approximately 81 percent of total private external debt.

The external debt-to-GDP ratio decreased to 29.5%

Indonesia's external debt structure remains healthy, supported by the application of prudential principles in its management. This is reflected in the ratio of Indonesia's external debt to Gross Domestic Product (GDP), which decreased to 29.5 percent in the third quarter of 2025, from 30.4 percent in the second quarter of 2025, and the dominance of long-term external debt, which accounted for 86.1 percent of total external debt.

To maintain a healthy external debt structure, Bank Indonesia and the Government continue to strengthen coordination in monitoring external debt developments. The role of external debt will also continue to be optimized to support development financing and encourage sustainable national economic growth.

"These efforts are being carried out to minimize risks that could impact economic stability," Denny emphasized.