Rp 640 Trillion Debt from 1998 Crisis Finally Settled

Finance Minister Suahasil Nazara explained that separated state assets, including a Rp 55 trillion surplus from Bank Indonesia (BI), have been utilised to settle debt instrument obligations incurred during the 1997-98 crisis response to the central bank.

According to Suahasil, this Rp 55 trillion surplus was confirmed in the 202 underlying audit books. This surplus has been transferred to the state treasury. In accordance with applicable regulations, this surplus is intended to be used for paying obligations or settling state debt instruments. The government, specifically the Ministry of Finance, decided to use it to resolve the debt obligations from the 1997-98 crisis management.

“It is true that when Bank Indonesia has a surplus, they transfer it to the state treasury. However, the Law stipulates that the use of Bank Indonesia’s surplus is regulated. How is it regulated? It is regulated to pay obligations or settle state debt instruments that were issued during the management of the 1997-98 crisis,” Suahasil stated during the APBN KiTA press conference on Friday (18/09/2026).

In Bank Indonesia’s records, whenever there is a surplus receipt, the government always returns it to the central bank.

“Every time there is a surplus, it is always paid by the government,” she said.

With the payment to BI, Suahasil emphasised that the government has officially completed the repayment of state debt instruments related to the Bank Indonesia Liquidity Assistance (BLBI) during the 1997-98 crisis as of last August.

“Therefore, we can now report that following coordination between Bank Indonesia and the government, the presence of the Rp 55 trillion BI surplus has been returned to repay the debt instruments for the former BLBI. The debt instruments for the 1997-98 crisis management were successfully settled in August,” she asserted.

“This is an achievement for us,” she added.

According to Suaheral, based on the history of 30 years ago, the government issued bonds worth Rp 640 trillion to manage the 1997-98 crisis.

“And we have repaid that. As for other types of bonds (recapitalisation), some were settled in July 2020, and others were settled recently. This is a significant moment in the history of Indonesia’s financial sector,” she concluded.