October 16, 2025 | 08:27 am
TEMPO.CO, Jakarta - Bank Indonesia (BI) records Indonesia's external debt (ULN) in August 2025 grew at a slower rate, 2.0 percent (yoy) to reach US$ 431.9 billion, lower than the 4.2 percent (yoy) growth in July 2025.
Executive Director of BI's Communication Department, Ramdan Denny Prakoso stated that this development primarily stems from the slowing growth of public sector external debt and the contraction of private sector external debt.
"The position of the government's external debt in August 2025 was recorded at US$ 213.9 billion, growing by 6.7 percent year on year (yoy) or slowing down compared to the 9.0 percent (yoy) growth in July 2025," said Denny in a statement in Jakarta on Wednesday, October 15, 2025, as quoted from Antara.
This development is mainly influenced by the slowing growth of foreign capital inflows into Government Securities (SBN) amid the persisting high uncertainty in the global financial market.
As one of the financing instruments for the state revenue and expenditure budget (APBN), Ramdan conveyed that external debt is managed carefully, measurably, and accountably, with its utilization continuously directed towards supporting priority programs that drive sustainability and strengthen the national economy.
Based on the economic sectors, the government's external debt is utilized, among others, to support the health and social services sector (23.4 percent of the total government's external debt); education services (17.2 percent); government administration, defense, and mandatory social security (15.7 percent); construction (12.3 percent); transportation and warehousing (9.0 percent); and financial and insurance services (8.0 percent).
The government's external debt position is dominated by long-term debt, accounting for 99.9 percent of the total government's external debt.
Furthermore, the private sector's external debt position was recorded at US$ 194.2 billion, experiencing a 1.1 percent (yoy) contraction in August 2025, higher than the 0.2 percent (yoy) contraction in the previous month.
The development of private sector external debt stems from non-financial corporations' debt, which contracted by 1.6 percent (yoy), and financial corporations' external debt, which grew at a slower rate of 0.8 percent (yoy).
Based on the economic sectors, the largest portion of private sector external debt comes from the manufacturing industry sector; financial and insurance services; electricity and gas procurement; as well as mining and excavation, accounting for 81.2 percent of the total private sector external debt.
Ramdan stated that Indonesia's external debt structure remains healthy, supported by the cautious principles applied in its management.
This is reflected in Indonesia's ratio of external debt to Gross Domestic Product (GDP) at 30.0 percent in August 2025, relatively stable compared to 29.9 percent in July 2025, dominated by long-term external debt at 85.9 percent of the total external debt.
"In order to ensure the external debt structure remains healthy, Bank Indonesia and the government continue to strengthen coordination in monitoring the development of external debt," said Ramdan.
He stated that the role of external debt will continue to be optimized to support development financing and drive sustainable national economic growth.
These efforts are made by minimizing risks that can affect economic stability.
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