Indonesia's External Debt Nears IDR 8,000 Trillion, Reaching New Record
Indonesia’s external debt (ULN) position in May 2026 grew 2.1 percent year-on-year (yoy) to USD 444.4 billion, equivalent to IDR 7,999.2 trillion at an exchange rate of IDR 18,000 per US dollar. This figure is higher than the previous month’s position, which grew 2 percent to USD 439.8 billion.
Head of the Bank Indonesia (BI) Communication Department, Ramdan Denny Prakoso, stated on Wednesday (15/7/2026) that this development was influenced by growth in public sector external debt, both government and central bank, amid a lower contraction in private external debt.
Denny explained that public sector external debt growth slowed. The government’s external debt position in May 2026 was USD 217.3 billion, growing 3.7 percent year-on-year, relatively stable compared to April 2026. This was mainly influenced by inflows into international Government Securities (SBN), reflecting maintained investor confidence in Indonesia’s economic prospects, alongside net payments 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 an instrument for financing the State Budget (APBN), the utilisation of external debt is directed to support productive sector financing while considering the sustainability of external debt management.
By economic sector, government external debt is utilised to support health services and social activities (22 percent of total government external debt), government administration, defence, and mandatory social security (20.6 percent), education services (16.2 percent), construction (11.5 percent), and transportation and warehousing (8.5 percent). Almost all government external debt is long-term. Meanwhile, the increase in Bank Indonesia’s external debt was driven by increased 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 high global uncertainty.