Bank Indonesia (BI) reported that Indonesia’s external debt (ULN) position in July 2025 stood at US$ 432.5 billion, equivalent to Rp 7,082.2 trillion (exchange rate Rp 16,375). This figure marked a decline compared with June 2025, when external debt reached US$ 434.1 billion or Rp 7,108.4 trillion.
On an annual basis, Indonesia’s external debt grew by 4.1% (yoy), slowing from 6.3% (yoy) growth in June 2025.

Ramdan Denny Prakoso, Executive Director of BI’s Communication Department, explained that the development was primarily driven by slower growth in public sector external debt. The July 2025 debt position was also affected by the strengthening of the U.S. dollar against most global currencies, including the Rupiah.

“The government’s external debt in July 2025 amounted to US$ 211.7 billion, growing by 9.0% (yoy), lower than the 10.0% (yoy) growth recorded in June 2025,” he said in a written statement on Monday (September 15, 2025).

According to Denny, this was influenced by a slowdown in the growth of foreign loans and government securities. As a key financing instrument for the State Budget (APBN), which is managed carefully, prudently, and accountably, external debt utilization continues to be directed toward supporting productive sectors to maintain Indonesia’s economic growth momentum.

By economic sector, government external debt was primarily used to support Health and Social Services (23.1% of total government debt), Education Services (17.0%), Public Administration, Defense, and Compulsory Social Security (15.9%), Construction (12.1%), as well as Transportation and Storage (8.9%).

“The government’s external debt remains under control, as it is dominated by long-term borrowings, which account for 99.9% of total government external debt,” he added.

Meanwhile, private sector external debt continued to contract. In July 2025, private external debt remained relatively stable compared to the previous month, at around US$ 195.6 billion, reflecting a contraction of 0.3% (yoy), nearly the same as in June 2025.

This development stemmed from a deeper contraction in non-financial corporations’ external debt, which fell by 1.2% (yoy), despite higher growth in financial corporations’ external debt, which expanded by 3.6% (yoy) in July 2025.

In terms of sectoral distribution, the largest share of private external debt came from Manufacturing; Financial and Insurance Services; Electricity and Gas Supply; as well as Mining and Quarrying, together accounting for 80.4% of total private external debt.

Denny emphasized that Indonesia’s overall external debt structure remains sound, supported by prudent debt management practices. This is reflected in the decline of the external debt-to-GDP ratio to 30.0% in July 2025 from 30.5% in June 2025, and the dominance of long-term debt, which makes up 85.5% of the total.

To maintain a healthy debt structure, Bank Indonesia and the Government continue to strengthen coordination in monitoring external debt developments. The role of external debt will also keep being optimized to support development financing and foster sustainable national economic growth.

“These efforts are carried out by minimizing potential risks that could affect economic stability,” he concluded.