Bank Indonesia (BI) has reported that Indonesia’s foreign debt (ULN) reached USD 431.9 billion in August 2025 — equivalent to about IDR 6,900 trillion. That’s a modest 2% increase compared to the same month last year.
The figure also edged up slightly from USD 430.7 billion in July 2025. Meanwhile, the foreign debt-to-GDP ratio stood at 30%, almost unchanged from the previous month’s 29.9%.
According to BI’s Head of Communications Department, Ramdan Denny Prakoso, the overall increase was mainly driven by a rise in government debt, while private sector borrowing actually declined.
Government Debt Rises, But Growth Slows Down
Government external debt reached USD 213.9 billion (around IDR 3,420 trillion), growing 6.7% year-on-year from August 2024.
However, that growth pace slowed compared to July 2025, when it expanded by 9% (yoy).
Ramdan explained that the slower growth was partly due to a decline in foreign capital inflows to Government Securities (SBN), as investors took a more cautious stance amid global uncertainty.
Private Debt Shrinks
Meanwhile, private sector foreign debt stood at USD 194.2 billion (roughly IDR 3,100 trillion), marking a 1.1% contraction year-on-year — deeper than the 0.2% decline recorded in July.
This drop was largely driven by lower debt levels among non-financial corporations (down 1.6%) and financial institutions (down 0.8%).
With this data, it’s clear that the government remains the main driver of Indonesia’s foreign debt growth, while private companies are holding back.
Analysts say this trend reflects the private sector’s cautious approach toward taking on new debt amid global economic uncertainty and volatile capital markets.
In short, while the government continues to rely on borrowing to fund national priorities, businesses seem to be playing it safe — watching the global situation before making their next move.
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