Arnoldus Kristianus, Jakarta – Indonesia's external debt edged down to $432.5 billion in July 2025 from $434.1 billion the previous month, according to a report released Monday by Bank Indonesia.

The country's external debt-to-GDP ratio also improved slightly, falling to 30 percent from 30.5 percent in June. Long-term debt continued to dominate, accounting for 85.5 percent of the total.

"The July 2025 position was also influenced by the strengthening of the US dollar against most global currencies, including the rupiah," said Bank Indonesia's Head of Communications, Ramdan Denny Prakoso, in a statement. "Indonesia's external debt structure remains sound, supported by the application of prudential principles in its management."

He added that external borrowing would continue to be optimized to support development financing and sustainable economic growth, while minimizing risks to financial stability.

Government debt

Government external debt stood at $211.7 billion in July, up 9 percent year-on-year. Nearly all of this – 99.9 percent – was long-term.

By sector, government external debt was primarily allocated to health and social services (23.1 percent of total government foreign debt), education (17 percent), public administration, defense, and compulsory social security (15.9 percent), construction (12.1 percent), and transportation and warehousing (8.9 percent).

Private sector debt

Private external debt remained stable at $195.6 billion, showing a 0.3 percent year-on-year contraction.

The largest shares of private borrowing came from the manufacturing sector, financial services and insurance, electricity and gas supply, as well as mining and quarrying. Together, these sectors accounted for 80.4 percent of total private external debt.

Bank Indonesia underscored that both government and private sector borrowing continue to be managed carefully to ensure resilience amid global economic uncertainties.

Source: https://jakartaglobe.id/business/indonesias-foreign-debt-eases-to-4325-billion-in-jul