Since 2012, private external debt has exceeded government debt.

Since 2012, total private external debt has surpassed government debt. Private sector borrowing continues to increase in line with corporate expansion efforts to enhance competitiveness. It is crucial that this substantial private debt be managed effectively to prevent mass defaults. One method is hedging against foreign currency debt.

Private sector external debt from 2004 to June 2016 grew by 184.8 percent, or an average of 9.5 percent per year. Over the same period, government external debt grew by only 90.5 percent, or an average of 5.8 percent per year. By the first half of 2016, private sector external debt reached US$165.1 billion (approximately Rp 2,146.2 trillion), while government debt reached US$158.7 billion (approximately Rp 2,063.1 trillion), based on an exchange rate of Rp 13,000 per US dollar.