Indonesia's External Debt Shows Marginal Decline in November 2025

Overview of External Debt Position

Indonesia's external debt experienced a slight decrease to $423.8 billion in November 2025, down from $424.9 billion in October 2025. This marginal decline was driven by reductions in both government and private sector debt. The debt-to-GDP ratio improved marginally to 29.3% from 29.4% in the previous month, indicating a stable external debt position relative to the country's economic output.

Breakdown of External Debt

Government Debt

The government portion of external debt decreased to $209.8 billion in November 2025, down from the previous month. The annual growth rate of government external debt slowed to 3.3% from 4.7% in October 2025. This slowdown was primarily influenced by fluctuations in foreign ownership of government securities amid continued global financial market uncertainty. The government has maintained a cautious approach to external borrowing, with 99.99% of its external debt being long-term, indicating a prudent debt management strategy.

Private Sector Debt

Private sector external debt also declined to $191.2 billion, showing a year-on-year contraction of 1.3%. This decline was primarily driven by reduced borrowing by non-financial corporations. The private sector debt is concentrated in key industries such as manufacturing, financial services, and energy, which together account for 80.5% of total private external debt.

Debt Management and Economic Implications

Bank Indonesia has emphasized that Indonesia's external debt structure remains healthy, supported by cautious management practices. The central bank, along with the government, continues to monitor external debt developments closely to ensure that it supports national development while minimizing risks to economic stability. The dominance of long-term debt (86.1% of total external debt) further strengthens the resilience of Indonesia's external debt position.

Conclusion

The slight decline in Indonesia's external debt, coupled with a stable debt-to-GDP ratio, reflects the country's robust external position. Continued prudent management and coordination between Bank Indonesia and the government will be crucial in maintaining this stability and supporting sustainable economic growth.