Jakarta. President Prabowo Subianto has welcomed the government's completion of Rp 218.3 trillion ($12.2 billion) in bond obligations to Bank Indonesia dating back to the 1997–98 Asian financial crisis, bringing nearly three decades of repayments to an end.

Finance Minister Suahasil Nazara said Tuesday that he had reported the settlement directly to Prabowo during a meeting at the Merdeka Palace in Jakarta.

“The president welcomed this settlement,” Suahasil said.

The Rp 218.3 trillion in bonds was issued as part of the government's response to the banking crisis, including the Bank Indonesia Liquidity Assistance program, commonly known by its Indonesian acronym BLBI.

The obligations were recorded as government debt to Bank Indonesia and repaid gradually through the state budget over nearly three decades.

The final payment was made in August 2026, ending the government's obligations to the central bank under the bonds.

Suahasil described the settlement as the closing of a chapter in Indonesia's economic history and said the experience offered important lessons for macroeconomic policymaking and crisis management.

“This has certainly provided extraordinary lessons for the Indonesian economy and for Indonesia's macroeconomic policy, making it part of history that can now be closed,” he said.

The 1997–98 crisis devastated Indonesia's financial system, forcing the government and Bank Indonesia to undertake extensive measures to stabilize banks and the broader economy.

The government issued several categories of bonds as part of the crisis response. Suahasil has said their combined original value was around Rp 640 trillion. Recapitalization bonds were fully repaid in July 2020, while the remaining BLBI-related bond obligations were settled in August this year.

BI Surplus Helps Fund Final Payment
The final settlement was financed using non-tax state revenue derived from Bank Indonesia's surplus, which was transferred to the state treasury under applicable regulations.

Suahasil previously said the Finance Ministry had recorded Rp 58 trillion in revenue from separated state assets following the transfer of Bank Indonesia's surplus based on its audited 2025 financial statements. Those funds could be used to settle government securities associated with the crisis.

The government completed the BLBI-related bond repayment earlier than the original maturity schedule, which extended as far as 2043.

BLBI Asset Recovery Continues
Suahasil stressed that repayment of the government's bonds to Bank Indonesia does not end the state's efforts to recover money and assets from private BLBI obligors and debtors.

The government will continue pursuing outstanding claims through the Finance Ministry's State Receivables Affairs Committee (PUPN) and Directorate General of State Assets (DJKN).

Suahasil said the government retains claims against obligors and debtors whose liabilities were taken over by the state during the restructuring and rescue of banks affected by the financial crisis.

“If those debtors were customers of banks that were subsequently recapitalized, had received BLBI assistance, or were taken over by the government, then the government has the right to collect all outstanding obligations from those obligors and debtors,” Suahasil said.

He emphasized that while the financial obligation between the government and Bank Indonesia has now been settled, the government's claims against private parties associated with the BLBI program remain in force.

Add as a preferred source on Google +