Jakarta – Indonesia's combined foreign debt, including both government and private sector obligations, decreased to $395.1 billion in August, down from $397.1 billion the previous month, the central bank announced on Monday. On a year-on-year basis, the debt figures also showed a slight decrease of 0.8 percent.

The government's foreign debt amounted to $191.6 billion, compared to $193.2 billion in July, marking a 3.6 percent reduction compared to the same month last year, according to Bank Indonesia spokesman Erwin Haryono.

"The government upholds its credibility by consistently repaying both principal and interest while ensuring responsible, efficient, and transparent debt management," Erwin said in a statement.

He said the foreign debt has been strategically allocated to support productive sectors and essential spending to sustain economic growth. According to him, 24 percent of foreign debt allocations were directed towards the healthcare sector and social programs, followed by administrative spending, defense, and social security (18.2 percent), education (16.8 percent), construction (14.2 percent), and financial services and insurance (10.1 percent).

Erwin said the government's foreign debt remains at a "secure and manageable level," with the majority of the debt being of a long-term nature.

Foreign debt from the private sector saw a slight decrease, amounting to $194.3 billion in August, compared to $194.5 billion in July. In comparison to the same month the previous year, private sector debt in August reduced by 5.2 percent.

The foreign debt now accounts for 29.1 percent of the country's gross domestic product.

Source: https://jakartaglobe.id/business/indonesias-foreign-debt-decreases-by-2-billio