Jakarta. Indonesia’s external debt declined to $424.4 billion in the third quarter of 2025, down from $432.3 billion in the previous quarter, Bank Indonesia reported on Monday.

On an annual basis, external debt contracted 0.6 percent year on year in Q3 2025 -- a sharp reversal from 6.4 percent annual growth in Q2 2025.

“This development was influenced by a slowdown in public-sector external borrowing and a contraction in private-sector external debt,” Bank Indonesia Communication Department Executive Director Ramdan Denny Prakoso said in an official statement.

Public-Sector Borrowing Slows
Government external debt grew 2.9 percent year on year to $210.1 billion in Q3 2025 -- below the 10 percent growth rate recorded in Q2.

By economic sector, government external debt was mainly used to support:

- health services and social activities (23.1 percent)
- public administration, defense, and mandatory social security (20.7 percent)
- education services (17 percent)
- construction (10.7 percent)
- transportation and warehousing (8.2 percent)
- financial and insurance services (7.5 percent)

Bank Indonesia stressed that nearly all government external debt consists of long-term obligations, helping maintain fiscal resilience.

Private external debt fell to $191.3 billion in Q3 2025 from $193.9 billion in Q2 2025, contributing to the overall decline in Indonesia’s external debt profile.

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