Indonesia's Debt to China Hits All-Time High, Leaving the US Behind?
Jakarta, CNBC Indonesia - Indonesia’s external debt sourced from China rose in February 2026, marking an all-time high. At the same time, Indonesia’s debt from the United States (US) also increased, while debt denominated in yuan hit a new peak.
According to the Indonesian External Debt Statistics (SULNI) April 2026 edition released by Bank Indonesia on Wednesday (15/4/2026), Indonesia’s external debt position in February 2026 was recorded at US$437.9 billion, up 2.5% year-on-year (yoy).
Converted to rupiah, the value of Indonesia’s external debt up to February 2026 reached approximately Rp7,501.22 trillion (assuming an exchange rate of Rp17,130/US$1).
This figure is higher than January 2026’s US$434.9 billion, with 1.7% yoy growth.
The rise in external debt in February was mainly supported by government debt, while private sector external debt continued to contract.
Indonesia’s External Debt to China Hits Record
From the creditor country perspective, Indonesia’s external debt to China in February 2026 reached US$25.574 billion. This is up from US$25.123 billion in January 2026. The increase also made Indonesia’s debt from China hit a new all-time high.
Previously, the record high for Indonesia’s debt from China was around US$25.048 billion in August 2025. Thus, the February 2026 position has surpassed the previous high and confirms that China’s role as one of Indonesia’s major creditors continues to grow.
Looking further back, this rise in debt from China also shows a fairly strong trend in recent years. In the landscape of Indonesia’s global creditors, China remains one of the largest lenders and its position is now increasingly close to the US.
On the other hand, Indonesia’s external debt from the US also rose. In February 2026, it reached US$27.803 billion, up from US$27.066 billion in January 2026. With that figure, the US remains the creditor with the larger loan value compared to China.
Nevertheless, the gap between Indonesia’s debt to the US and China is now narrowing. As of February 2026, the difference between them is around US$2.23 billion. This indicates that although the US is still ahead of China, the rate of increase in debt to China appears increasingly significant and continues to approach the US position.
If this trend continues, it is not impossible that in the near future, Indonesia’s debt position from China could surpass the debt from the US. This statement is a reading of the trend from the latest creditor position data.
Indonesia’s Debt Denominated in Yuan Also Breaks Record
The rise in debt from China is also in line with the increase in Indonesia’s external debt denominated in Chinese yuan. In February 2026, the external debt position in yuan (CNY) was recorded at US$15.356 billion, up from US$14.977 billion in January 2026. This value also became a new all-time high.
Previously, the yuan-based debt position had reached US$14.775 billion in December 2025. Now, the level has broken a new boundary above US$15 billion.
This increase is notable as it shows that Indonesia’s debt exposure to the yuan continues to grow, in line with the expanding financing and transaction relationships with China.
Nevertheless, Bank Indonesia emphasises that Indonesia’s external debt structure up to February 2026 remains healthy.
This is reflected in the external debt-to-GDP ratio of 29.8%, with the composition still dominated by long-term debt at 84.9% of total external debt. With this structure, refinancing risk is considered still manageable amid high global uncertainties.
“In order to maintain a healthy external debt structure, Bank Indonesia and the Government continue to strengthen coordination in monitoring external debt developments,” BI stated in its official release.
BI added that external debt will continue to be optimised to support development financing and drive sustainable national economic growth, while minimising risks to economic stability.