Jakarta. Indonesia’s foreign debt eased in October 2025, reflecting a continued decline in private sector borrowings, even as government foreign debt still recorded solid annual growth on the back of sustained foreign investor inflows, Bank Indonesia (BI) said on Monday.

Total foreign debt stood at $423.9 billion in October, down from $425.6 billion in September. On a year-on-year basis, Indonesia’s foreign debt grew 0.3%, mainly supported by the public sector.

Government foreign debt reached $210.5 billion in October 2025, growing 4.7% year on year despite a monthly decline. BI Executive Director for Communications Ramdan Denny Prakoso said the annual increase was driven by foreign capital inflows into international government bonds, underscoring investors’ continued confidence in Indonesia’s economic outlook amid heightened uncertainty in global financial markets.

Despite the annual rise, Ramdan stressed that government foreign debt remained well managed. “As one of the instruments for financing the state budget, government foreign debt is managed prudently, measurably, and accountably,” he said in an official statement.

He added that the use of government foreign debt continued to be directed toward financing priority programs that support sustainability and strengthen the national economy. Long-term debt dominated government foreign debt, accounting for 99.99% of the total.

By sector, government foreign debt was allocated mainly to health services and social activities, which accounted for 22.2%, followed by public administration, defense, and compulsory social security at 19.6%. Education services made up 16.4%, construction 11.7%, and transportation and warehousing 8.6%.

In contrast, private sector foreign debt declined to $190.7 billion in October, from $192.5 billion in September. On an annual basis, private foreign debt contracted by 1.9%.

BI assessed Indonesia’s foreign debt structure as remaining healthy, as reflected in the foreign debt-to-gross domestic product ratio of 29.3% in October 2025 and the dominance of long-term debt, which accounted for 86.2% of total foreign debt.

To maintain a sound foreign debt structure, BI and the government will continue to strengthen coordination in monitoring developments. “These efforts are aimed at minimizing risks that could affect economic stability, while optimizing the role of foreign debt to support development financing and sustainable economic growth,” Ramdan said.

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