Prabowo Reassures Global Investors: Indonesia Has Never Defaulted on Debt

Indonesia’s reputation for meeting its international financial obligations was in the spotlight when President Prabowo Subianto met American business leaders in Washington DC. At the Gala Iftar Business Summit held at the US Chamber of Commerce on Wednesday (18/2/2026), Prabowo affirmed that Indonesia has a clean track record on debt repayment.

Prabowo stated that national economic management has been conducted prudently over many years. According to him, throughout the nation’s history, Indonesia has never once been in a state of default on its borrowings.

“We have managed our economy wisely for many years. We have never defaulted, not once in our history. We have never failed to pay our debts,” Prabowo told the business delegates.

Prabowo explained that this consistency is rooted in Indonesia’s political culture, which upholds honour in meeting obligations. He stressed that each change of leadership would not disrupt debt repayment commitments, even if the incoming regime were a political opponent of the previous government.

Data from the monetary authority shows Indonesia’s financial position remains sound amid rising borrowings. Bank Indonesia reported that external debt stood at US$431.7 billion at the end of Q4 2025, equivalent to approximately Rp7,298 trillion (assuming an exchange rate of Rp16,906 per US dollar). This figure marked an increase from the previous quarter’s US$427.6 billion.

Although nominal debt has risen, Indonesia’s debt structure is considered healthy. The external debt-to-GDP ratio stood at 29.9 per cent. Of the total debt, the majority comprises long-term borrowings, accounting for 85.7 per cent.

More specifically, government debt at the close of 2025 rose to US$214.3 billion from US$210.1 billion in the preceding quarter. The increase was primarily driven by strong foreign investor appetite for international Government Securities (SBN).