Jayanty Nada Shofa, Makassar – The Asian Development Bank (ADB) doesn't have the slightest doubt about Indonesia's ability to pay off its debt on time, according to its top brass, amid Jakarta's new borrowings.
ADB's cumulative financing to Indonesia – including public sector loans, grants, and technical assistance – totaled at least $50.6 billion as of April 2026. Despite public pessimism over the state of the economy, ADB Country Director for Indonesia Bobur Alimov struck an optimistic tone when asked about the Manila-based lender's repayment confidence level.
"Indonesia is in very good condition with very strong macroeconomic fundamentals. The public debt is quite stable and at a fairly low rate," Alimov said during ADB's press tour in Makassar on Thursday.
According to Alimov, ADB is also providing concessional lending that comes with "very competitive rates". Indonesia also "never" missed its payment deadlines over the 6 decades of Jakarta being an ADB member. He added: "Loan repayment starts after the completion of the implementation. It is usually 20 plus years."
"There is no doubt ever about [Indonesia's] ability to repay. These are long-term financing for development. It is not short-term," Alimov said.
ADB classifies its borrowers into 3 groups (A, B, C), with C being the countries that need the least concessionality. The Group A of poorer nations is only eligible for concessional assistance. Indonesia is currently in the C2 club of upper middle-income economies that can tap ADB's ordinary capital resources at near-market terms. Alimov admitted that reclassifications can happen depending on a country's economic situation.
"But [Indonesia is] only [going] up. I'm very positive about Indonesia," Alimov said, alluding to the multilateral development bank's hope for Jakarta to upgrade to the group of rich borrowers with higher rates or even graduate from ADB's aid.
Bank Indonesia reported that the country's foreign debt totaled $459.3 billion as of August, up by 5.6% year-on-year. Government borrowing totaled $220.9 billion, while loans taken out by the private sector reached $195.6 billion. Indonesia's external debt-to-gross domestic product (GDP) ratio stood at 30.9%.
Some of ADB's financing has helped upgrade Indonesia's healthcare sector, with part of the money going into procuring a dental chair and laryngoscope at Makassar's Puskesmas Minasa Upa. ADB has also bankrolled the construction of the Losari wastewater treatment plant, the largest of its kind in eastern Indonesia. The bank has announced plans to provide a new $218 million loan to strengthen the National Agency of Drug and Food Control (BPOM).
Source: https://jakartaglobe.id/business/adb-has-no-doubt-indonesia-can-repay-its-deb