Indonesia clears remaining securities from late-1990s crisis using central bank surplus
Indonesia announced that securities issued to address the late-1990s financial crisis were fully settled in August, funded by a surplus transferred from Bank Indonesia to the state treasury.
Indonesia has completed the settlement of securities issued during the late-1990s financial crisis, with the final payments made in August. The settlement was financed by a surplus recorded in Bank Indonesia’s audited 2025 statements, which was subsequently transferred to the state treasury in accordance with regulations. As a result, the Finance Ministry recorded an inflow of Rp58 trillion ($3.25 billion) from the transferred state assets.
The repayment follows earlier completions of recapitalisation bonds in July 2020 and July 2026. Authorities indicated that the received funds are earmarked for covering government liabilities and settling other securities. The announcement was made in a statement cited in Jakarta on Sunday.
Why it matters
Clearing the debt improves Indonesia's fiscal position and demonstrates effective use of central-bank surpluses.
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