Indonesia's Foreign Debt Rises 6.8% in May 2025

TEMPO.CO, Jakarta - Bank Indonesia recorded the foreign debt (ULN) of Indonesia in May 2025 at approximately US$435.6 billion (at an exchange rate of Rp16,258 per U.S. dollar). Annually, the foreign debt grew by 6.8 percent, slower than the growth in April 2025 at 8.2 percent. Indonesia's foreign debt in April was around US$431.5 billion or approximately Rp7,030 trillion.

The Executive Director of Bank Indonesia's Communication Department, Ramdan Denny Prakoso, stated that this development was caused by the slowdown in the growth of public sector foreign debt and the contraction of private sector foreign debt growth. The government's foreign debt in May was recorded at US$209.6 billion, growing by 9.8 percent annually.

In the previous month, the government's foreign debt grew by 10.4 percent annually. "The development of ULN is influenced by the maturity payment of international Government Securities (SBN), amid the inflow of foreign capital in domestic SBN," Denny said in an official statement on Monday, July 14, 2025.

Based on the economic sector, the government's foreign debt is utilized to support the healthcare and social activities sector (22.3 percent); government administration, defense, and mandatory social security (18.7 percent); education services (16.5 percent); construction (12 percent); and transportation and warehousing (8.7 percent). Denny mentioned that the government's foreign debt position remains stable because it is dominated by long-term debts, accounting for 99.9 percent.

Meanwhile, the private sector's foreign debt in May was recorded at US$196.4 billion, experiencing a 0.9 percent annual growth contraction. In the previous month, the growth of private sector foreign debt also experienced a contraction of 0.4 percent.

The development of private sector foreign debt stems, in part, from the foreign debt of financial institutions, which grew by 1.2 percent annually. This growth is slower than April, which was at 2.8 percent. In addition, the foreign debt of non-financial institution companies experienced an annual growth contraction of 1.4 percent. This contraction is larger than the previous month, recorded at 1.2 percent.

Based on the economic sector, the largest share of private sector foreign debt comes from the manufacturing industry, financial and insurance services, electricity and gas procurement, as well as mining and excavation, accounting for 80.2 percent of the total private sector foreign debt. Private sector foreign debt is dominated by long-term debts, accounting for 76.5 percent.

Denny claimed that Indonesia's foreign debt structure remains healthy. "This is reflected in Indonesia's foreign debt to Gross Domestic Product (GDP) ratio, which is maintained at 30.6 percent and dominated by long-term foreign debts, accounting for 84.6 percent of the total foreign debt," said Denny.

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