Bank Indonesia Reports Indonesia's Foreign Debt Remains Stable at 434.7 Billion US Dollars in January 2026

Jakarta – Bank Indonesia reports that Indonesia’s foreign debt in January 2026 remained stable at 434.7 billion US dollars, representing year-on-year growth of 1.7 per cent, down from 1.8 per cent growth recorded in December 2025.

The development was primarily driven by public sector foreign debt. Government foreign debt in January 2026 reached 216.3 billion US dollars, recording year-on-year growth of 5.6 per cent, slightly higher than the 5.5 per cent growth in December 2025.

Ramdan Denny Prakoso, Executive Director of Bank Indonesia’s Communications Department, stated that the January 2026 foreign debt developments were influenced by the drawdown of foreign loans to support government programmes and projects, as well as foreign capital inflows into international state securities amid sustained investor confidence in Indonesia’s economic prospects despite heightened global financial market uncertainty.

As a key instrument for financing the state budget, government foreign debt is 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 is deployed to support health services and social activities (22.0 per cent of total government debt), government administration, defence, and mandatory 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 predominantly long-term debt, representing 99.98 per cent of total government foreign debt.

Private foreign debt, meanwhile, declined from 194.0 billion US dollars in December 2025 to 193.0 billion US dollars in January 2026. On a year-on-year basis, private foreign debt contracted by 0.7 per cent in January 2026, a deeper decline than the 0.2 per cent contraction recorded in the previous month.

The decline in private foreign debt was driven by non-financial corporations’ debt. By economic sector, the largest share of private foreign debt originates from the manufacturing industry, financial services and insurance, electricity and gas supply, and mining and quarrying sectors, together accounting for 80.1 per cent of total private foreign debt.

Private foreign debt remains dominated by long-term debt, representing 76.2 per cent of total private foreign debt.

Prakoso confirmed that Indonesia’s foreign debt structure remains healthy, supported by the application of prudent management principles. This is reflected in the Indonesia’s foreign debt-to-GDP ratio, which declined to 29.6 per cent in January 2026 from 29.9 per cent in December 2025, and by the dominance of long-term debt, accounting for 85.6 per cent of total foreign debt.

To ensure the foreign debt structure remains healthy, Bank Indonesia and the Government committed to strengthening coordination in monitoring foreign debt developments. The role of foreign debt will continue to be optimised to support development financing and drive sustainable national economic growth, whilst minimising risks that could affect economic stability.