Jakarta. Indonesia’s government debt rose by 0.14 percent to Rp 8,473.9 trillion ($537.34 billion) as of Sept. 30, up from Rp 8,461.93 trillion the previous month. This debt level represents 38.55 percent of the nation’s GDP, well below the 60 percent threshold set by the State Finance Law.

The Finance Ministry said in a statement that the government "prudently manages its debt to maintain an optimal portfolio while supporting the growth of the domestic financial market."

Government securities (SBN) account for the majority of the debt at Rp 7,483.09 trillion (88.31 percent), with the remaining Rp 990.81 trillion (11.69 percent) in loans. Domestic SBN amounts to Rp 6,103.90 trillion, while foreign currency SBN comprises Rp 1,379.19 trillion.

According to the Finance Ministry, domestic investors hold the majority share (85.3 percent) of SBN, while foreign ownership stands at 14.7 percent, including holdings by foreign governments and central banks. Within domestic holdings, financial institutions hold 41.4 percent of SBN, with banks holding 19.5 percent, insurance and pension funds holding 18.7 percent, and mutual funds holding 3.2 percent.

Government securities play a critical role for financial institutions by supporting investment, liquidity management, and risk mitigation. Bank Indonesia holds approximately 25 percent of the domestic SBN, using it as a tool for monetary policy management.

To expand the investor base and improve public financial literacy, the government has promoted individual ownership of SBN. This category has grown steadily, from less than 3 percent in 2019 to 8.7 percent as of September 2024. The remaining domestic SBN is held by various institutions for their investment and financial management needs.

Breaking down SBN further, domestic SBN includes Rp 4,871.6 trillion in government bonds and Rp 1,232.3 trillion in Sharia-compliant securities. Foreign currency SBN consists of Rp 1,045.64 trillion in bonds and Rp 333.55 trillion in Sharia-compliant instruments.

Loans total Rp 990.81 trillion, with Rp 39.93 trillion in domestic loans and Rp 950.88 trillion in foreign loans. Foreign loans are distributed among bilateral loans (Rp 257.76 trillion), multilateral loans (Rp 569.05 trillion), and commercial bank loans (Rp 124.07 trillion).

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