Indonesia's Foreign Debt Drops To 424.4 Billion US Dollars In The Third Quarter Of 2025

Rupiah and US Dollars (Photo: Antara)

JAKARTA - Bank Indonesia (BI) reported that Indonesia's Foreign Debt (ULN) position in the third quarter of 2025 decreased.

Executive Director of the BI Communication Department, Ramdan Denny Prakoso, said that Indonesia's external debt position in the third quarter of 2025 was recorded at $424.4 billion, or decreased compared to the external debt position in the second quarter of 2025 of 432.3 billion US dollars.

He added that on an annual basis, Indonesia's external debt contracted 0.6 percent (yoy) in the third quarter of 2025, a decrease compared to the second quarter of 2025 which grew by 6.4 percent (yoy).

"This development is influenced by the slow growth of external debt in the public sector and the contraction in external debt in the private sector," he said in his statement, Monday, November 17.

Denny conveyed that the government's external debt position in the third quarter of 2025 was recorded at 210.1 billion US dollars or on an annual basis grew 2.9 percent (yoy), or slowed down compared to 10.0 percent (yoy) growth in the second quarter of 2025.

According to him, this development is mainly influenced by the contraction in foreign capital inflow growth in domestic Government Securities (SBN) in line with the uncertainty of the global financial market which is still 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 191.3 billion US dollars in the third quarter of 2025, lower than the position in the second quarter of 2025 of 193.9 billion US dollars.

According to him, this development was influenced by external financial companies (financial corporates) which contracted by 3.0 percent (yoy) and non-financial companies (non-financial companies) which contracted by 1.7 percent (yoy).

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

According to him, this is reflected in the ratio of Indonesia's external debt to Gross Domestic Product (GDP) which fell 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 with a share of 86.1 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.

He conveyed that the role of external debt will also continue to be optimized to support development financing and encourage sustainable national economic growth. These efforts are carried out by minimizing risks that can affect economic stability.