Indonesia's Foreign Debt Capai 431.9 Billion US Dollars In August 2025

JAKARTA - Bank Indonesia (BI) reported that Indonesia's Foreign Debt (ULN) position in August 2025 grew slowly.

Executive Director of the BI Communication Department, Ramdan Denny Prakoso, said that Indonesia's external debt position in August 2025 was recorded at US $ 431.9 billion, or an annual growth of 2.0 percent (yoy), lower than the growth of 4.2 percent (yoy) in July 2025.

"This development mainly stems from the slow growth of external debt in the public sector and the contraction in the growth of external debt in the private sector," he said in his statement, Wednesday, October 15.

Denny conveyed that the government's external debt position in August 2025 was recorded at US$213.9 billion, grew by 6.7 percent (yoy), or slowed down compared to the growth of 9.0 percent (yoy) in July 2025.

According to him, this development was mainly influenced by the slowdown in the growth of foreign capital inflows in Government Securities (SBN) in line with the uncertainty of global financial markets that remained high.

"As one of the instruments for financing the State Revenue and Expenditure 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 encourage sustainability and strengthening the national economy," he said.

Meanwhile, the position of private external debt was recorded at 194.2 billion US dollars, or experienced a growth contraction of 1.1 percent (yoy) in August 2025, higher than the previous month's contraction of 0.2 percent (yoy).

According to him, the development of private external debt came from external non-financial companies, which contracted by 1.6 percent (yoy) and external financial institutions (financial companies) which grew to 0.8 percent (yoy).

Denny conveyed that the structure of Indonesia's external debt remains healthy, supported by the application of prudential principles in its management.

Therefore, Denny explained that in order to keep the external debt structure healthy, Bank Indonesia and the Government continue to strengthen coordination in monitoring the development of external debt.

According to him, this is reflected in the ratio of Indonesia's external debt to Gross Domestic Product (GDP) of 30.0 percent in August 2025, relatively stable with July 2025, namely 29.9 percent, and the dominance of long-term external debt with a share of 85.9 percent of total external debt.

He conveyed that in order to keep the external debt structure healthy, Bank Indonesia and the Government continue to strengthen coordination in monitoring the development of external debt.

"The role of external debt will also continue to be optimized to support development financing and encourage sustainable national economic growth," he said.

According to him, these efforts were carried out by minimizing risks that could affect economic stability.