Indonesia's central bank (Bank Indonesia) said that the country's private debt has increased steadily in recent years. On the one hand this is a good sign as it indicates that the private sector is growing, but on the other hand the lender of last resort warned Indonesian companies to watch over their foreign loans as it can jeopardize the country’s financial stability. Private sector foreign debt doubled between 2009 and 2013, reaching USD $141.4 billion in January 2014. Meanwhile, public debt stood at the level of USD $127.9 billion in the same month.

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Moody's Investors Service, one of the big credit rating agencies, stated in its 'Credit Analysis: Indonesia' report that - despite the ongoing current account deficit (which is considered to be structural) and a relatively shallow and volatile domestic capital market (which contributes to Indonesia’s reliance on external funding) - the agency is positive about Indonesia's outlook due to its growth prospects, narrow fiscal deficits and low public debt. Indonesian government bonds are rated at Baa3, which is Moody's lowest investment-grade status.

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Indonesia’s foreign debt was recorded at USD $257.30 billion in August 2013, a 0.9 decrease compared to foreign debt in July 2013 (USD $259.61 billion). On an annual basis (yoy), foreign debt growth in August was 6.6 percent, thus slowing compared to July’s growth of 7.4 percent (yoy). The central bank of Indonesia (Bank Indonesia) considers that the slowing growth in the country's foreign debt is in line with the slowing growth of the domestic economy. Indonesia's GDP growth forecast has been revised down to below the six percent mark.

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The Rating and Investment Information Inc (R&I), a rating agency from Japan, kept Indonesia’s Sovereign Credit Rating at BBB- with a stable outlook. In their press release, R&I stated that the four key factors behind the decision are: (a) Indonesia’s capacity to achieve sustainable economic growth in the long term (at around six percent per year); (b) conservative fiscal management (causing a marginal fiscal deficit); (c) a sound banking sector; and (d) a low level of government debt.

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This morning (30/04/13), president Susilo Bambang Yudhoyono delivered a speech in which he announced that the price of subsidized fuel will increase to relieve mounting pressures on the government budget deficit. Yudhoyono refrained from mentioning a new price level nor did he announce when the new measure will be implemented. He said that cash compensation programs for the poor need to be prepared first before adjustment of the country's subsidized fuel price can be executed.

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Indonesian central government debt increased IDR 15.8 trillion (USD $1.6 billion) in the first quarter of 2013 to a total current debt of IDR 1,991.22 trillion (USD $205.3 billion). This total debt consists of loans amounting to IDR 590.2 trillion (USD $60.8 billion) and government securities (Surat Berharga Negara, or SBN) totaling 1,401.1 trillion (USD $144.4 billion). The loans are divided in foreign loans (IDR 588.4 trillion) and domestic loans (IDR 1.8 trillion). The country's debt-to-GDP ratio is currently approximately 24 percent.

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When speaking with Indonesians about the performance of the Indonesian government under the leadership of President Joko Widodo, high government debt is usually mentioned as a key source of concern (especially in case the conversation partner is not supportive of the Widodo administration).

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Credit rating agency Fitch Ratings announced on 14 March 2019 that it has affirmed Indonesia's long-term foreign-currency issuer default rating at 'BBB' with a stable outlook (investment grade level). This decision was particularly based on Indonesia’s favorable gross domestic product (GDP) growth outlook and the nation’s small government debt burden (government debt is low at an estimated 29.8 percent of GDP in 2018).

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Global credit rating agency Fitch Ratings affirmed Indonesia's sovereign credit rating at BBB- (investment grade) with a stable outlook. The country's long-term foreign and local currency issuer default rating, the senior unsecured foreign and local currency bonds, and Islamic certificates (sukuk) were all affirmed at BBB-. Meanwhile, the short-term foreign currency IDR was affirmed at 'F3', the country ceiling at BBB, and the outlook on the long-term IDRs are stable. Through the affirmation Fitch acknowledges Indonesia's ongoing commitment to structural reforms amid recent economic woes.

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On Friday (17/04) Indonesia’s central bank (Bank Indonesia) announced that the country’s foreign debt grew 9.4 percent (y/y) to USD $298.9 billion in February 2015, thus slower than the 10.5 percent (y/y) growth rate in the preceding month. Indonesia’s external debt growth slowed as both public and private sectors refrained from taking more debt. Public sector foreign debt grew 4.4 percent (y/y) to USD 134.8 billion, while private sector foreign debt rose 13.8 percent (y/y) to USD $164.1 billion in February.

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Foreign debt of Indonesia accelerated 11.8 percent year-on-year (y/y) to USD $294.4 billion in November 2014. This total debt of USD $294.4 billion in November 2014 consists of public foreign debt of USD $133.9 billion and private foreign debt of USD $160.5 billion. The central bank of Indonesia (Bank Indonesia) stated that public foreign debt rose 8.6 percent (y/y) mainly on a rise in foreign holdings on government debt securities. Meanwhile, the growth pace of private foreign debt slightly eased.

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Total government debt of Indonesia rose IDR 781 trillion (USD $64.5 billion) between 2009 and 2013 to IDR 2,371.39 trillion (USD $196 billion). This growing outstanding government debt is mainly caused by government loans to finance its State Budgets (APBN) as well as recent sharp rupiah depreciation (as part of this debt is denominated in foreign currencies). In the same period, Indonesia's per capita debt rose from IDR 6.8 million (USD $561) to IDR 8.6 million (USD $710), a 26.4 percent growth.

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Indonesia’s external debt growth continued to slow in October 2013. Debt grew 5.8 percent (yoy) to USD $262.4 billion compared to 8.6 percent (yoy) growth in the previous month. Slowing growth in external debt occurred both in the public and private sector. Public sector external debt position at the end of October 2013 grew 0.5 percent (yoy) to USD $125.8 billion compared to 2.1 percent (yoy) in September. Meanwhile, private sector external debt grew steadily at 11.1 percent (yoy) to USD $136.6 billion as compared to the previous month.

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In recent weeks, Indonesia has to cope with a large amount of negative publicity as large capital outflows from the country's financial markets occurred, partly due to weak economic results regarding the current account balance, inflation and the the rupiah. Interest rates are rising, thus eroding people's purchasing power and consequently curbing economic growth. However, the Global Competitiveness Index 2013-2014, released by World Economic Forum, contained a positive outcome for Southeast Asia's largest economy.

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Data released by a department of Indonesia's Ministry of Finance showed that the country's budget deficit amounted to IDR 25.9 trillion (USD $2.64 billion) on 31 May 2013. This figure is equivalent to 16.9 percent of the target that is set in the 2013 State Budget (IDR 153.3 trillion). The IDR 25.9 trillion deficit translates to 0.27 percent of Indonesia's gross domestic product (GDP). The maximum amount of deficit - as stipulated by the State Budget Law of 2013 - that is allowed to be maintained is equivalent to 1.65 percent of GDP.

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The government of Indonesia plans to issue global sukuk (the Islamic equivalent of bonds) and retail bonds (Obligasi Ritel Indonesia, abbreviated ORI) in October 2013. Proceeds from the bond issuances will be used to finance the budget deficit, which is targeted at 2.48 percent of gross domestic product (GDP) in the 2013 Revised State Budget (APBN-P). This percentage figure is equivalent to IDR 233.7 trillion (USD $23.82 billion), and represents a robust increase compared to the deficit in 2012 (at 1.77 percent of GDP).

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