Arnoldus Kristianus, Jakarta – Indonesia's foreign debt has slightly declined to $427.8 billion in February from $427.9 billion in the previous month, according to the country's central bank.

However, Bank Indonesia reported a 4.7 percent year-on-year (yoy) growth in the foreign debt. Even so, the overseas debt is growing at a slower pace compared to the 5.3 percent yoy growth in January 2025.

Bank Indonesia's spokesman Ramdan Denny Prakoso attributed the slower growth to the decline in overseas debt for both the public and private sectors. Another factor is the strengthening US dollar.

"Our external debt to gross domestic product [GDP] ratio has dropped from 30.3 percent to 30.2 percent," Ramdan said Thursday.

Long-term debts also make up 84.7 percent of the foreign debt. The government owes $204.7 billion worth of foreign debt as of February, also down from $204.8 billion in January.

According to Ramdan, many foreign investors have switched from government bonds to other investment instruments amid rising global uncertainties. About 22.6 percent of the government's foreign debt goes to the healthcare and social welfare sector. Followed by public administration and defense (17.8 percent); education (16.6 percent); construction (12.1 percent). Most debts have a long repayment period.

Bank Indonesia reported that foreign debt that came from the private sector's borrowings stood at $194.8 billion. They mainly came from the processing industry, financial services, energy, and mining sectors. About 76.5 percent of what the private sector has borrowed are long-term debts.

Source: https://jakartaglobe.id/business/indonesias-foreign-debt-declines-to-4278-billio