Indonesia’s Foreign Debt Rises in Q4-2025

RRI.CO.ID, Jakarta - Bank Indonesia (BI) reported that Indonesia’s foreign debt remained under control in the fourth quarter of 2025, despite an increase from the previous quarter. BI data showed that the country’s foreign debt stood at USD 431.7 billion at the end of 2025.

Ramdan Denny Prakoso, BI’s Executive Director of the Communication Department, said developments in public sector debt mainly drove the increase. “This figure is higher than the external debt position in the third quarter of 2025, which was USD 427.6 billion,” he said in a statement in Jakarta on Thursday, February 18, 2026, as quoted from BI’s official website.

He added that the government’s foreign debt remained stable. “The government’s foreign debt position was recorded at USD 214.3 billion, higher than the previous figure of USD 210.1 billion,” he said.

According to BI, foreign capital inflows into international Government Securities (SBN) contributed to the increase, reflecting investor confidence in Indonesia’s economic prospects amid global financial market uncertainty.

The government manages foreign debt as part of State Budget financing in a cautious, measured, and accountable manner. Funds are directed to priority programs to maintain fiscal sustainability and strengthen the national economy.

The largest allocations were to the Health Services and Social Activities sector (22.1 percent of total government foreign debt), Government Administration, Defense, and Mandatory Social Security (19.8 percent), Education Services (16.2 percent), Construction (11.7 percent), and Transportation and Warehousing (8.6 percent). Government debt is dominated by long-term tenors, accounting for 99.99 percent.

Meanwhile, private foreign debt declined to USD 192.8 billion in the fourth quarter of 2025, from USD 194.5 billion in the previous quarter.

The decrease was mainly recorded in nonfinancial corporations. By sector, the largest private debt came from manufacturing, financial and insurance services, electricity and gas supply, and mining and quarrying, which together accounted for 79.9 percent of total private foreign debt. Private debt also remained dominated by long-term tenors, at 76.3 percent. ***