Bank Indonesia Records Indonesia's Foreign Debt at US$434.7 Billion in January 2026, Rising 1.7 Per Cent Year-on-Year

Bank Indonesia has recorded Indonesia’s foreign debt at US$434.7 billion in January 2026, representing year-on-year growth of 1.7 per cent, a slight deceleration from December 2025’s 1.8 per cent growth rate.

The development has been primarily influenced by public sector foreign debt. According to Ramdan Denny Prakoso, Executive Director of the Bank Indonesia Communications Department, government foreign debt stood at US$216.3 billion in January 2026, growing 5.6 per cent year-on-year, marginally higher than the 5.5 per cent growth recorded in December 2025.

The January 2026 foreign debt development has been driven by government foreign loan drawdowns supporting the implementation of government programmes and projects, as well as incoming foreign capital flows into international government securities, reflecting sustained investor confidence in Indonesia’s economic prospects despite heightened uncertainty in global financial markets.

Government foreign debt, serving as one instrument for financing the state budget, continues to be managed carefully, measurably, and accountably, with utilisation directed towards supporting priority programmes to maintain fiscal sustainability and strengthen the national economy.

By economic sector, government foreign debt supports health services and social activities (22.0 per cent of total government foreign debt); government administration, defence, and compulsory social security (20.3 per cent); education services (16.2 per cent); construction (11.6 per cent); and transport and warehousing (8.5 per cent).

Government foreign debt is dominated by long-term obligations, representing 99.98 per cent of total government foreign debt. Private sector foreign debt, meanwhile, declined from US$194.0 billion in December 2025 to US$193.0 billion in January 2026.

On a year-on-year basis, private sector foreign debt contracted 0.7 per cent in January 2026, a deeper contraction than the 0.2 per cent decline recorded in the previous month. The private sector foreign debt reduction has been driven by foreign debt from non-financial corporations.

By economic sector, the largest private sector foreign debt originates from manufacturing industry; financial services and insurance; electricity and gas supply; and mining and quarrying sectors, collectively accounting for 80.1 per cent of total private sector foreign debt.