Indonesia has fully settled Rp218.3 trillion ($218.3 trillion) in bond debt issued to Bank Indonesia (BI) during the 1997-1998 Asian financial crisis. Finance Minister Suahasil Nazara announced the completion, stating it marks the end of the government's obligations to BI for these crisis-handling bonds. The final payment was made in August 2026, closing a chapter on a nearly three-decade-old financial liability. President Prabowo Subianto welcomed the completion as a significant milestone in managing the crisis's impact.
The repayment was made gradually through the State Budget, with the final installment in August 2026 utilizing non-tax state revenue from Bank Indonesia's surplus. Specifically, Bank Indonesia's audited 2025 financial statements showed a surplus, from which Rp58 trillion ($3.25 billion) was transferred to the state treasury and used for the debt settlement. This follows the settlement of recapitalization bonds in July 2020, with the BLBI bonds being one of several types of bonds issued during the crisis.
Despite the full repayment to Bank Indonesia, Minister Nazara emphasized that the government retains the right to pursue claims against BLBI obligors and debtors who have not yet fulfilled their obligations. The state will continue efforts to collect outstanding debts from these parties. This distinction highlights that while the government's direct obligation to BI is concluded, the broader issue of crisis-related outstanding debts remains.
The total obligation for crisis management bonds from 1997-1998 amounted to approximately Rp640 trillion ($640 trillion), with the Rp218.3 trillion ($218.3 trillion) owed to Bank Indonesia now fully settled. The government clarified that while this specific crisis-era bond debt is repaid, it does not mean the government has no outstanding debt in general, as bond issuance remains a tool for state financing and is held by various economic actors, including financial institutions and Bank Indonesia itself for monetary policy purposes.
