Indonesia’s External Debt Falls to $424.5 Billion in Q3 2025
Key Takeaways
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JAKARTA, Investortrust.id — Indonesia’s external debt declines in the third quarter of 2025 as Bank Indonesia reports a lower position of $424.5 billion, signaling easing pressures from both public and private borrowers. The improvement reflects weaker foreign inflows to government securities and continued deleveraging among corporates while strengthening the country’s debt profile.
Bank Indonesia said the country’s external debt position reached $424.5 billion in the July to September period, down 1.85 percent from $432.5 billion in the previous quarter.
On a yearly basis, external debt contracted 0.6 percent after expanding 6.4 percent in the second quarter. Executive Director for Communications Ramdan Denny Prakoso said the moderation came from slower public sector borrowing and a deeper contraction in private sector debt.
Government external debt reached $210.1 billion, rising 2.9 percent year on year, yet slowing from ten percent annual growth in the second quarter. Ramdan attributed the deceleration to weaker foreign portfolio inflows into domestic government securities amid heightened global financial uncertainty.
He said government external debt remained concentrated in long term instruments that accounted for 99.9 percent of the total, supporting stability and risk management.
The government used external financing to support health and social services at 23.1 percent of its external debt, administration, defense and mandatory social security at 20.7 percent, education services at 17 percent, construction at 10.7 percent, transportation and warehousing at 8.2 percent, and financial and insurance services at 7.5 percent.
Private external debt fell to $191.3 billion in the third quarter, lower than $193.9 billion in the previous quarter. Annual contraction deepened to 1.9 percent from 0.2 percent in the second quarter.
The decline was driven by a three percent annual contraction in external debt of financial institutions, while nonfinancial corporations saw a 1.7 percent annual contraction.
Private external debt remained concentrated in manufacturing, financial and insurance services, electricity and gas supply, and mining, which together accounted for about 81 percent of total private external debt.
Bank Indonesia assessed the overall debt structure as healthy, supported by prudent management and resilience to external shocks. The external debt to GDP ratio improved to 29.5 percent in the third quarter from 30.4 percent in the second quarter. Long term debt accounted for 86.1 percent of total external debt, anchoring stability.