BI: External Debt Growth Slowed in Q1 2026
Bank Indonesia (BI) has reported that Indonesia’s external debt (ULN) grew at a slower pace in the first quarter of 2026, with the ratio of external debt to Gross Domestic Product (GDP) falling to 29.5 per cent.
Indonesia’s external debt position in Q1 2026 was recorded at US$433.4 billion, representing a year-on-year growth of 0.8 per cent, a slowdown compared to the 1.9 per cent growth recorded in the fourth quarter of 2025.
Ramdan Denny Prakoso, Executive Director of BI’s Communication Department, stated in Jakarta on Monday that the development of the external debt position was influenced by both public and private sector debts.
Furthermore, the government’s external debt position in Q1 2026 stood at US$214.7 billion, growing by 3.8 per cent year-on-year, which is lower than the 5.5 per cent growth seen in Q4 2025. The development of government external debt was primarily influenced by foreign capital inflows into international Government Securities (SBN), as investor confidence in Indonesia’s economic prospects remains maintained.
As one of the financing instruments for the State Budget (APBN), government external debt is managed carefully, measurably, and accountably, with utilisation directed towards supporting government priority spending and leveraging economic growth momentum. Based on economic sectors, government external debt was utilised to support healthcare services and social activities (22.1 per cent of total government debt); government administration, defence, and compulsory social security (20.2 per cent); education services (16.2 per cent); construction (11.5 per cent); and transport and warehousing (8.5 per cent). The government debt position is dominated by long-term debt, accounting for 99.99 per cent of the total.
Meanwhile, the private sector external debt position in Q1 2026 was recorded at US$191.4 billion, a decrease from the US$194.2 billion recorded in Q4 2025, representing a year-on-year contraction of 1.8 per cent. This decline occurred in both the financial corporations and non-financial corporations borrowing groups, which recorded year-on-year contractions of 3.6 per cent and 1.3 per cent, respectively.
In terms of economic sectors, the largest share of private external debt comes from the manufacturing industry, financial and insurance services, electricity and gas supply, as well as mining and quarrying, accounting for 80.4 per cent of total private debt. Private debt continues to be dominated by long-term debt, representing 76.6 per cent of the total.
BI also noted that the structure of Indonesia’s external debt remains healthy, supported by the application of prudent management principles. The ratio of external debt to GDP decreased from 30.0 per cent in Q4 2025 to 29.5 per cent in Q1 2026. Indonesia’s external debt is also dominated by long-term debt, with a share of 85.4 per cent of the total.
To ensure the external debt structure remains healthy, BI and the Government continue to strengthen coordination in monitoring debt developments. “The role of external debt continues to be optimised to support development financing and drive sustainable national economic growth. These efforts are undertaken by minimising risks that could affect economic stability,” said Ramdan.