Finance Minister Suahasil Reports to Prabowo: BLBI Debt Fully Settled
Finance Minister Suahasil Nazara has revealed that the government has fully repaid all Bank Indonesia Liquidity Assistance (BLBI) bond debts to Bank Indonesia (BI), which were issued during the 1997-1998 economic crisis.
The total value of the BLBI bonds issued by the government, which constituted a debt to BI, reached Rp218.3 trillion. The final payment was made on 24 August 2026, utilising Non-Tax State Revenue (PNBP) sourced from Bank Indonesia’s surplus.
Suahasil made this announcement after being summoned by President Prabowo Subianto to the State Palace in Jakarta on Tuesday (22/9/2026).
“At the end of last month, we successfully completed the payment of the BLBI bond debt to Bank Indonesia,” said Suahasil.
According to Suahasil, these bonds were part of the government’s measures to handle the financial crisis that occurred approximately three decades ago. At that time, the government issued BLBI bonds and assumed responsibility for the payment of these obligations to Bank Indonesia.
“The total amount of bonds issued back then (97-97) was Rp218.3 trillion. This was recorded as government debt to Bank Indonesia and has been paid routinely by the government through the State Budget (APBN) to Bank Indonesia over time,” she stated.
The final payment on 24 August 2026 utilised PNBP sourced from BI’s surplus. Suahasil explained that when BI records a surplus from its operational activities, a portion of that surplus is deposited into the state treasury in accordance with applicable regulations and recorded as PNBP. These funds can then be used by the government to meet obligations, including the payment of BLBI bond debts.
“Non-Tax State Revenue originating from BI’s surplus, such as this, is used to pay off debts incurred during the crisis management period,” said Suahasil.
With this settlement, Suahasil noted that the government has closed the historical chapter of bond issuance for the handling of the 1997-1998 crisis. “The Rp218.3 trillion bond debt is finished; we have fully paid it,” she asserted.
Previously, Suahasil stated that the total settlement for both BLBI bonds and recapitalisation bonds amounted to Rp640 trillion, with the final payment instalment being Rp55 trillion. These payments were frequently made from the surplus in the central bank’s financial balance sheet.
Specifically, the Rp640 trillion includes Rp218.3 trillion for BLBI bonds (SRBI-01), which has been fully settled with the final payment on 24 August 2026, and the remaining Rp422.63 trillion for recapitalisation bonds, which was fully settled with the final payment on 25 July 2020.
Despite the government’s debt to BI being settled, Suahasil emphasised that the settlement does not erase the state’s right to collect debts from BLBI obligors or debtors. This means that the settlement of the government’s obligations to BI is a separate matter from the obligations of parties who previously received facilities or were involved in the BLBI programme.
“This settlement does not reduce the state’s right to collect obligations from BLBI obligors or debtors,” Suahasil said. She explained that the government retains the right to demand obligations from obligors and debtors related to banks that previously received BLBI or were recapitalised by the government. Consequently, the government will continue the collection process against these parties.
“Therefore, the government will continue to pursue the collection of obligations from these debtors and obligors, because the state has the right to collect,” she said.
Thus, according to Suahasil, what has concluded is the debt relationship between the government and Bank Indonesia regarding BLBI bonds, not the obligations of the obligors or debtors to the state. “However, the relationship between the government and Bank Indonesia is finished,” she added.
Suahasil assessed that this settlement serves as an important milestone in resolving the impacts of the 1997-1998 economic crisis. She noted that the crisis from 30 years ago required a long-term resolution process and that the experience serves as a vital lesson for the Indonesian economy and national macroeconomic policy.
“As of today, the debt to BI for BLBI bonds has been fully and completely paid,” concluded Suahasil.