Bank Indonesia (BI) reported that Indonesia’s external debt stood at US$423.9 billion in October 2025, equivalent to Rp7,063.44 trillion based on an exchange rate assumption of Rp16,657 per US dollar. This figure declined from the September 2025 level of US$425.6 billion, or Rp7,089.38 trillion.

Ramdan Denny Prakoso, Executive Director of BI’s Communications Department, stated that on an annual basis Indonesia’s external debt grew by 0.3 percent year on year, mainly driven by an increase in public sector borrowing.

“Indonesia’s external debt position in October 2025 decreased to US$423.9 billion, down from US$425.6 billion in September 2025,” Denny said in an official statement on Monday (December 15).

Government external debt reached US$210.5 billion in October 2025, representing annual growth of 4.7 percent. This development was supported by foreign capital inflows into international government bonds, reflecting continued investor confidence in Indonesia’s economic outlook amid rising uncertainty in global financial markets.

Denny emphasized that external debt, as one of the financing instruments for the State Budget (APBN), is managed prudently, measurably, and transparently. Its utilization is directed toward funding priority programs that support economic sustainability and strengthen national economic resilience.

By sector, government external debt was mainly allocated to health services and social activities (22.2 percent of total government external debt), public administration, defense, and mandatory social security (19.6 percent), education services (16.4 percent), construction (11.7 percent), and transportation and warehousing (8.6 percent).

The structure of government external debt remains overwhelmingly long-term in nature, accounting for 99.99 percent of total government external debt.

Meanwhile, private sector external debt stood at US$190.7 billion in October 2025, lower than the US$192.5 billion recorded in September 2025. On a yearly basis, private external debt contracted by 1.9 percent.

The decline was observed across both financial institutions and non-financial corporations, which posted annual contractions of 4.7 percent and 1.2 percent, respectively.

In terms of economic sectors, the largest share of private external debt originated from manufacturing, financial and insurance services, electricity and gas supply, as well as mining and quarrying, together accounting for 80.9 percent of total private external debt.

Regarding the overall structure, Denny noted that Indonesia’s external debt remains well maintained. This is reflected in the external debt-to-GDP ratio of 29.3 percent in October 2025 and the dominance of long-term debt, which represented 86.2 percent of total external debt.

He added that BI and the government will continue to strengthen coordination in monitoring external debt developments. External borrowing will remain optimized to support development financing and promote sustainable economic growth, while minimizing risks that could affect economic stability.