Indonesia's Foreign Debt Capai 432.5 Billion US Dollars In July 2025

US dollar (Photo: dock unsplash)

JAKARTA - Bank Indonesia (BI) noted that Indonesia's Foreign Debt (ULN) position in July 2025 was recorded at 432.5 billion US dollars, or decreased when compared to the position of external debt in June 2025 of 434.1 billion US dollars.

However, on an annual basis, Indonesia's external debt grew 4.1 percent (yoy), or slowed down compared to 6.3 percent (yoy) growth in June 2025.

"This development mainly stems from the slowdown in the growth of external debt in the public sector," said BI Communication Department Executive Director Ramdan Denny Prakoso in his statement, Monday, September 15.

Denny conveyed that the government's external debt position was maintained because it was dominated by long-term debt with a share of 99.9 percent of the total government's external debt.

He said that the government's external debt grew lower, namely the government's external debt position in July 2025 was recorded at 211.7 billion US dollars, or grew by 9.0 percent (yoy), or lower than the growth of 10.0 percent (yoy) in June 2025.

According to him, this development was influenced by the slowdown in the growth of foreign loan positions and government debt securities.

"As one of the tools for financing the State Revenue and Expenditure Budget (APBN) which is managed carefully, measurably, and accountably, the use of external debt continues to be directed to support the financing of the productive sector in maintaining the momentum of Indonesia's economic growth," he said.

Meanwhile, private external debt continued to contract growth where the position of private external debt in July 2025 was recorded to be stable compared to the previous month in the range of 195.6 billion US dollars, or experienced a contraction in growth of 0.3 percent (yoy), relatively the same as the contraction in the previous month.

According to him, the development of private external debt stems from an increase in growth contraction in external debt, not financial institutions (non-financial corporates) to 1.2 percent (yoy), amidst the higher growth of external debt financial institutions (financial corporates), of 3.6 percent (yoy) in July 2025.

Denny said 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 fell to 30.0 percent in July 2025 from 30.5 percent in June 2025, and the dominance of long-term external debt with a share of 85.5 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.