BI: Indonesia's External Debt Reaches Rp 7,627 Trillion at the End of Q1
Bank Indonesia (BI) has announced that Indonesia’s external debt position in the first quarter of 2026 experienced a slowdown in growth. The nation’s external debt was recorded at US433.4billionorRp7, 627trillion(atanexchangerateofRp16, 700/US). This position represents a year-on-year growth of 0.8%, a deceleration compared to the 1.9% growth recorded in the fourth quarter of 2025.
Ramdan Denny Prakoso, Executive Director of Bank Indonesia’s Communication Department, stated that the development of this debt position was influenced by both public and private sector external debts. BI noted that government external debt grew at a lower rate, reaching US$214.7 billion, or a 3.8% year-on-year increase, which is lower than the 5.5% 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,” Denny said in a press release on Monday (18/5/2026).
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 debt was utilised to support Health Services and Social Activities (22.1% of total government debt), Government Administration, Defence, and Mandatory Social Security (20.2%), Education Services (16.2%), Construction (11.5%), and Transport and Warehousing (8.5%). The government debt position is dominated by long-term debt, accounting for 99.99% of the total.
Meanwhile, BI noted that private sector external debt decreased. The private sector debt position in Q1 2026 was recorded at US$191.4 billion, down from US$194.2 billion in Q4 2025, representing a year-on-year contraction of 1.8%. This decline occurred within the financial corporations group and non-financial corporations, which saw year-on-year contractions of 3.6% and 1.3%, respectively.
Regarding economic sectors, Denny stated that the largest portion of private debt originates from the Manufacturing Sector, Financial and Insurance Services, Electricity and Gas Supply, and Mining and Quarrying, accounting for 80.4% of total private debt. Private debt remains dominated by long-term obligations, making up 76.6% of the total.
Consequently, BI views Indonesia’s external debt structure as remaining healthy, supported by the application of prudent management principles. This is reflected in the ratio of Indonesia’s external debt to Gross Domestic Product (GDP), which fell to 29.5% in Q1 2026 from 30.0% in Q4 2025, and is dominated by long-term debt at 85.4% of the total. To ensure the debt structure remains healthy, Bank Indonesia and the Government continue to strengthen coordination in monitoring debt developments. The role of external debt will continue to be optimised to support development financing and drive sustainable national economic growth, with efforts focused on minimising risks that could affect economic stability.