JAKARTA - Bank Indonesia (BI) noted that Indonesia's Foreign Debt (ULN) position in May 2025 was recorded at 435.6 billion US dollars, or an annual growth of 6.8 percent (yoy), lower than the growth in April 2025 of 8.2 percent (yoy).
"This development is due to the slowdown in external debt growth in the public sector and the contraction in the growth of private external debt," said BI Communications Department Executive Director Ramdan Denny Prakoso in his statement, Monday, July 14.
Denny conveyed that the government's external debt position in May 2025 was 209.6 billion US dollars, or grew by 9.8 percent (yoy), lower than the growth of 10.4 percent (yoy) in April 2025.
According to him, the development of the external debt was influenced by payments due to international Government Securities (SBN), amidst foreign capital inflows in domestic SBN, as global investors maintained confidence in Indonesia's economic prospects amid global economic uncertainty.
"As one of the instruments for financing the State Revenue and Expenditure Budget (APBN), the use of external debt continues to be directed to priority programs in supporting the stability and momentum of economic growth while still paying attention to the sustainability aspect of external debt management," he said.
Meanwhile, in May 2025, the position of private external debt was recorded at 196.4 billion US dollars, or experienced a growth contraction of 0.9 percent (yoy), higher than the previous month's contraction of 0.4 percent (yoy).
According to him, this development came from the external debt of financial institutions which recorded a slowdown in growth from the previous month of 2.8 percent to 1.2 percent in May 2025, and the external debt of non-financial corporation which recorded a growth contraction of 1.4 percent (yoy), higher than the contraction of 1.2 percent (yoy) in April 2025.
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Denny conveyed that the structure of Indonesia's external debt remains healthy, supported by the application of the precautionary principle in its management, this is reflected in the ratio of Indonesia's external debt to Gross Domestic Product (GDP) which is maintained at 30.6 percent, and dominated by long-term external debt with a share of 84.6 percent of total external debt.
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.
"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.
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