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

Bank Indonesia (BI), through its Communications Department’s Ramdan Denny Prakoso, reported that Indonesia’s external debt (ULN) increased in May 2026.

He stated that external debt in May 2026 grew 2.1 per cent year-on-year (yoy) to US$444.4 billion, or approximately Rp 7,999 trillion (assuming an exchange rate of Rp 18,000 per US dollar).

That position was slightly higher than the growth recorded in April 2026, when external debt also rose by 2.0 per cent (yoy).

“This development was influenced by the growth of public external debt, both from the government and the central bank, amid a lower contraction in private external debt growth,” Ramdan said in his statement on Wednesday, 15 July 2026.

Government external debt stood at US$217.3 billion in May 2026, growing 3.7 per cent annually (yoy), which he said was relatively stable compared with growth in April 2026.

This was influenced by inflows into international State Securities (SBN), reflecting sustained investor confidence in Indonesia’s economic prospects, particularly amid net payments on maturing government external loans.

“The government remains committed to maintaining its credibility by meeting its principal and interest payment obligations on time, and managing external debt prudently, measurably, and flexibly to achieve efficient and optimal financing,” Ramdan said.

As one of the components in the State Budget (APBN) financing instruments, the use of external debt continues to be directed towards supporting productive sector financing while remaining mindful of the sustainability of external debt management.

Almost all government external debt is long-term. By economic sector, government external debt is used, among others, to support the Health Services and Social Activities sector, accounting for 22.0 per cent of total government external debt.

It also funds Government Administration, Defence, and Compulsory Social Security at 20.6 per cent, Education Services at 16.2 per cent, Construction at 11.5 per cent, and Transport and Warehousing at 8.5 per cent.

Meanwhile, the increase in Bank Indonesia’s external debt was driven by rising non-resident holdings of the central bank’s rupiah securities instrument, SRBI. This is in line with pro-market monetary operations and efforts to maintain rupiah exchange rate stability amid persistently high global uncertainty.