As of the end of March or the first quarter of 2025, Indonesia’s external debt (ULN) saw an increase of US$3.2 billion, reaching US$430.4 billion. This was up from US$427.2 billion recorded in February 2025. With the JISDOR exchange rate at Rp16,566 per US dollar as of the end of March 2025, this amount equals approximately Rp7,130 trillion.

Bank Indonesia’s Head of the Communication Department, Ramdan Denny Prakoso, stated that despite the rise, Indonesia’s external debt remains well-managed and in a healthy condition overall.

“This is reflected in the ratio of external debt to Gross Domestic Product (GDP), which stayed at 30.6%, and the fact that long-term debt dominates, making up 84.7% of the total ULN,” Denny explained in an official statement on Thursday (May 15, 2025).

The total external debt grew 6.4% year on year (YoY), which is higher than the 4.3% YoY growth recorded in the previous quarter.

Denny specified that the government’s external debt in Q1 2025 stood at US$206.9 billion, equivalent to around Rp3,427.5 trillion. This figure marked a 7.6% YoY growth, which was notably higher than the 3.3% increase seen in Q4 2024.

The increase was attributed to new loan disbursements and higher foreign capital inflows into international Government Securities (SBN), driven by sustained investor confidence in Indonesia’s economic outlook, despite growing uncertainty in global financial markets.

As a funding instrument for the state budget (APBN), the use of external debt is strategically directed toward promoting economic growth, while ensuring long-term sustainability in its management.

By sector, government external debt has been utilized to support key areas, including:

• Health Services and Social Work Activities (22.4%)

• Public Administration, Defense, and Mandatory Social Security (18.5%)

• Education Services (16.5%)

• Construction (12.0%)

• Transportation and Warehousing (8.7%)

The government’s external debt remains under control, with 99.9% comprised of long-term debt.

On the other hand, the private sector’s external debt experienced a continued contraction in Q1 2025, totaling US$195.5 billion—a decline of 1.2% YoY. However, this contraction was less severe than the previous quarter’s 1.6% YoY drop.

This contraction mainly came from non-financial corporations, which saw a decline of 0.9%, improving from a 1.7% decrease in Q4 2024.

In terms of sectors, the largest shares of private external debt came from:

• The Manufacturing Industry

• Financial Services and Insurance

• Electricity and Gas Supply

• Mining and Quarrying
  These sectors accounted for a combined 79.6% of total private external debt.

Private sector external debt is also largely made up of long-term obligations, constituting 76.4% of the total.

Denny emphasized that to maintain a sound external debt structure, Bank Indonesia and the Ministry of Finance are continuing to enhance coordination in monitoring debt developments.

“The role of external debt will also be optimized to support development financing and promote sustainable national economic growth. These efforts are pursued while minimizing risks that could threaten economic stability,” he concluded.