As of April 2025, Indonesia’s external debt has reached US$431.5 billion, growing 8.2% year-on-year, according to Bank Indonesia (BI). Amid this rising trend, Singapore has emerged as Indonesia’s largest bilateral creditor, contributing US$56.41 billion in loans—an indication of the island state’s expanding financial influence across the region.
Singapore’s lending position underscores its strategic role as a regional financial hub, especially as Southeast Asia seeks to enhance its intra-ASEAN connectivity and reduce dependency on Western capital. Though slightly down from US$56.67 billion at the end of 2024, Singapore’s contribution remains far ahead of other lenders.
The United States holds the second-largest exposure, with US$27.63 billion, followed by China (US$23.05 billion) and Japan (US$21.26 billion). These four nations alone account for over 30% of Indonesia’s total external debt, reflecting both economic partnerships and geopolitical leverage points.
Top 10 Bilateral Creditors to Indonesia (April 2025):
Singapore – US$56.41 billion
United States – US$27.63 billion
China – US$23.05 billion
Japan – US$21.26 billion
Hong Kong – US$18.71 billion
Other Asia – US$10.85 billion
South Korea – US$8.68 billion
France – US$8.54 billion
Other Americas – US$5.26 billion
Germany – US$5.20 billion
From a regional policy lens, the concentration of debt within Asian lenders, particularly Singapore, China, and Japan, suggests a geoeconomic rebalancing—with emerging Asia providing financial lifelines to its peers rather than relying solely on multilateral institutions or Western creditors.
While Singapore’s lending is largely channeled through its banking and investment institutions, China and Japan’s credit lines are typically tied to infrastructure projects and bilateral development initiatives, often aligned with larger diplomatic strategies like the Belt and Road Initiative or Japan’s Partnership for Quality Infrastructure.
Observers note that this growing exposure among regional players may influence Indonesia’s foreign policy posture, especially in areas such as digital infrastructure, energy transition, and industrial investment. The pattern also highlights the growing importance of ASEAN’s internal capital markets in mitigating global financial volatility.
Indonesia’s rising external debt levels come amid a broad macroeconomic recalibration, including a weakening rupiah, higher import costs, and tightening global monetary conditions. Analysts suggest that while current debt ratios remain within manageable levels, prudent debt management and fiscal discipline will be critical moving forward—particularly with nearly US$70 billion of sovereign bonds maturing in the next three years.
As ASEAN continues to push for a more integrated economic architecture, Singapore’s top creditor position may represent more than a financial statistic—it signals a strategic shift in how regional economies support each other in navigating global headwinds.
