Gov’t Fully Repays Rp218.3 Trillion BLBI Bond Debt

The Government has completed the repayment of Rp218.3 trillion in bond debt issued under the Indonesian Bank Liquidity Assistance (Bantuan Likuiditas Bank Indonesia/BLBI) program to Bank Indonesia (BI). In a statement delivered at Merdeka Palace, Jakarta, Minister of Finance Suahasil Nazara said the repayment marks the end of the Government’s obligations to BI for bonds issued in response to the 1997–1998 financial crisis.

“The Rp218.3 trillion in bond debt has been paid and is now settled. We have fully settled it. That way, we are closing the chapter on the issuance of crisis-handling bonds from 1997–1998, which has been concluded during the administration of President Prabowo Subianto,” the Minister said on Tuesday (09/22).

According to him, the obligation was recorded as government debt to Bank Indonesia and has been paid gradually through the State Budget. The final payment was made in August 2026, utilizing non-tax state revenue derived from Bank Indonesia’s remaining surplus.

“Bank Indonesia may generate a surplus in the course of its operations. When it records a surplus, regulations stipulate how much of that surplus must be transferred to the state treasury, and we record it as non-tax state revenue,” he explained.

“This non-tax state revenue originating from BI’s surplus is used to repay the debt incurred during the past crisis-handling efforts,” he added.

Although the Government’s obligation to Bank Indonesia has been fully settled, the Minister emphasized that the repayment does not extinguish the State’s right to collect outstanding obligations from BLBI obligors and debtors. The Government retains the right to pursue claims against parties that have not yet fulfilled their obligations.

“If those debtors are recorded as customers of banks that underwent restructuring, received BLBI or were recapitalized, and were subsequently taken over by the Government, then the Government holds the right to claim all outstanding obligations from those obligors and debtors. Therefore, I need to stress that the Government will continue to pursue the collection of obligations from those debtors and obligors,” he stressed.

On the occasion, he also conveyed that President Prabowo Subianto welcomed the completion of the obligation. The full repayment of the BLBI bond debt is regarded as an important milestone in Indonesia’s long journey to address the impact of the crisis and serves as a lesson for the management of national economic policy.

“This certainly serves as an extraordinary lesson for Indonesia’s economy and for Indonesia’s macroeconomic policy, thus becoming a historical record that is now closed. As of today, the debt to BI for the BLBI bonds has been fully and completely repaid,” he remarked. (BPMI of Presidential Secretariat) (EST/TM)