No. 27/33/DKom
Indonesia's external debt decreased in the fourth quarter of 2024. The position of external debt in Indonesia in the fourth quarter of 2024 was recorded at USD424.8 billion, decreased from USD428.1 billion recorded at the third quarter of 2024. Annually, the external debt position in Indonesia posted a 4.0% (yoy) growth, moderating from 8.3% (yoy) growth in the third quarter of 2024. The lower external debt position were attributed by the public and private sectors. In addition, the external debt position in the fourth quarter of 2024 was also influenced by broad-based US dollar appreciation against most global currencies, including the Rupiah.
Government external debt decreased. The position of government external debt in the fourth quarter of 2024 stood at USD203.1 billion, down from USD204.1 billion in the third quarter of 2024. Annually, government external debt grew moderately to 3.3 % (yoy) from 8.4% (yoy) in the third quarter of 2024. The lower government external debt position was attributable to lower positions of debt securities, influenced by US dollar appreciation. Meanwhile, foreign loans and capital inflows into domestic and international government securities (SBN) booked a net inflow, in line with maintained investor confidence in the promising domestic economic outlook for Indonesia. The government remains firmly committed to preserving credibility in servicing principal and interest payments promptly, as well as managing external debt prudently, measurably, and flexibly to secure the most efficient and optimal financing. External debt, as a component of State Revenue and Expenditure Budget (APBN) financing instruments, is consistently geared towards supporting government efforts to finance productive sectors based on sustainable management. By sector, external debt support was primarily oriented towards human health and social activities (20.8% of total government external debt); public administration, defence and compulsory social security (19.7%); education (16.7%); construction (13.4%); as well as insurance and financial services (9.0%). The current state of government external debt is manageable considering nearly all, or 99.9% of total government external debt, is dominated by long-term maturities.
Private external debt also declined. In the fourth quarter of 2024, the position of private external debt was recorded at USD194.1 billion, retreating from USD196.3 billion in the third quarter of 2024. Annually, private external debt experienced a deeper 2.2% (yoy) contraction in the reporting period after decreasing 0.6% (yoy) in the third quarter of 2024. Such development was driven by financial corporations and non-financial corporations, which recorded respective contractions of 2.5% (yoy) and 2.1% (yoy). By sector, the main contributors to private external debt were the manufacturing industry; insurance and financial services; electricity and gas supply; as well as mining and quarrying, collectively accounting for 79.5% of total private external debt. Furthermore, 76.7% of total private external debt was dominated by long-term tenors.
The structure of external debt in Indonesia remains sound, supported by prudential management. Such developments were reflected in a lower external debt to gross domestic product (GDP) ratio of 30.4% in the fourth quarter of 2024, down from 31.1% in the third quarter of 2024, with long-term debt dominating 84.8% of total external debt. Seeking to maintain a healthy structure, Bank Indonesia and the Government will continue strengthening coordination to monitor external debt developments. The role of external debt will also continue to be optimised to support financing for development and promote sustainable national economic growth. Such efforts are undertaken by minimising the risks posed to economic stability.
The latest external debt data and metadata are presented in the publication of Indonesia's External Debt Statistics (SULNI) February 2025 edition on the Bank Indonesia website. This publication is also accessible via the Ministry of Finance website.
Jakarta 17th February 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
