Indonesia fully settles debt linked to 1997-1998 financial crisis

“Now, the securities issued as part of efforts to address the 1997-1998 crisis were fully settled in August. This is also an achievement for us,” he said in a statement cited in Jakarta on Sunday.

The obligations were settled in August 2026 using a surplus from Bank Indonesia that was transferred to the state treasury, Nazara said.

He said the central bank’s audited 2025 financial statements showed a surplus that was subsequently transferred to the state treasury in accordance with applicable regulations. As a result, the Finance Ministry received Rp58 trillion ($3.25 billion) in income from separated state assets, he said.

“The funds are regulated for use in paying obligations or settling government securities. These were government securities issued at the time to address the 1997-1998 crisis,” Nazara said.

The repayment followed the settlement of recapitalization bonds, or recap bonds, in July 2020.

“There were several types of bonds we issued at the time, during the 1997-1998 crisis. Some were fully repaid in July 2020, while others were repaid in August,” Nazara said.

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Translator: Putu Indah, Kuntum Khaira