Indonesia's External Debt Grows 2.1%, Approaching IDR 8,000 Trillion as of May 2026

Bank Indonesia (BI) reported that Indonesia’s external debt (ULN) increased in May 2026. The external debt grew 2.1% year-on-year (yoy) to US$444.4 billion, or approximately IDR 7,999 trillion assuming an exchange rate of IDR 18,000 per US dollar. This position is slightly higher than the 2.0% yoy growth recorded in April 2026. The development was influenced by growth in public sector external debt, encompassing both the government and the central bank, amid a lower contraction in private external debt. The government’s external debt position in May 2026 stood at US$217.3 billion, growing 3.7% yoy, relatively stable compared to the growth in April 2026. This was influenced by inflows into international Government Securities (SBN), reflecting sustained investor confidence in Indonesia’s economic prospects, particularly amidst net repayments of maturing government foreign loans. The government remains committed to maintaining credibility by fulfilling principal and interest payment obligations on time and managing external debt prudently, measurably, and flexibly to achieve efficient and optimal financing. As a component of the State Budget (APBN) financing instruments, the utilisation of external debt is directed to support productive sector financing while considering the sustainability of external debt management. Almost all government external debt is long-term. By economic sector, government external debt is utilised, among others, to support the Health Services and Social Activities sector, accounting for 22.0% of total government external debt. Other allocations include Government Administration, Defence, and Compulsory Social Security at 20.6%, Education Services at 16.2%, Construction at 11.5%, and Transportation and Warehousing at 8.5%. Meanwhile, the increase in Bank Indonesia’s external debt was driven by higher non-resident holdings of Bank Indonesia Rupiah Securities (SRBI) monetary instruments, in line with pro-market monetary operations and efforts to maintain Rupiah exchange rate stability amid persistent high global uncertainty.