August 16, 2025 | 06:55 pm
TEMPO.CO, Jakarta - Bank Indonesia (BI) has reported that Indonesia's Foreign Debt (ULN) position for the second quarter of 2025 reached US$433.3 billion, equivalent to approximately Rp7,014.2 trillion (at an exchange rate of Rp16,187.9 per US dollar). This figure represents a growth of 6.1% year-on-year (yoy), which is a slowdown from the 6.4% yoy growth recorded in the previous quarter.
"This development is influenced by private external debt, which continued to contract from the previous quarter," said BI Executive Director of the Communications Department, Ramdan Denny Prakoso, in an official statement on Friday, August 15, 2025.
Government External Debt
Denny detailed that the government's ULN position in the second quarter of 2025 was US$210.1 billion, growing by 10.0% yoy. This growth is higher than the 7.6% yoy recorded in the first quarter of 2025.
This increase is primarily influenced by the rise in foreign capital inflows into domestic Government Securities (SBN). "The government continues to be committed to managing external debt carefully, measurably, and accountably to achieve efficient and optimal financing," Denny affirmed.
Based on economic sectors, the government's external debt is allocated to support several key areas, including:
Health and Social Activities (22.3% of total government ULN)
Government Administration, Defense, and Mandatory Social Security (19%)
Education Services (16.4%)
Construction (11.9%)
Transportation and Warehousing (8.6%)
Denny highlighted that the government's external debt structure remains secure, as it is dominated by long-term debt, which accounts for 99.9% of the total.
Private External Debt
Meanwhile, private sector external debt continued to contract. In the second quarter of 2025, private ULN was recorded at US$194.9 billion, contracting by 0.7% yoy. This is a smaller contraction compared to the 1% yoy recorded in the previous quarter.
This development stems from the contraction in non-financial corporations' ULN by 1.4% yoy, even as financial corporations' ULN grew by 2.3% yoy.
By economic sector, the largest share of private external debt comes from the following industries, accounting for 80.5% of the total: Manufacturing; Financial and Insurance Services; Electricity and Gas Procurement; and Mining and Quarrying.
Similar to government debt, private external debt is also predominantly long-term, making up 76.7% of the total.
Overall External Debt Structure
Bank Indonesia assesses that Indonesia's overall external debt structure remains healthy. "This is reflected in Indonesia's external debt to Gross Domestic Product ratio, which was recorded at 30.5% in the second quarter of 2025, lower than the 30.7% in the first quarter of 2025," said Denny. He also noted that Indonesia’s total external debt is dominated by long-term debt, which makes up 85% of the total.
Editor’s Choice: AMRO Forecasts Indonesia's Debt Ratio Will Climb to 42% by 2029
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