Indonesia's External Debt Reaches 444.4 Billion US Dollars in May 2026

Bank Indonesia (BI) reported that Indonesia’s external debt (ULN) in May 2026 grew by 2.1 per cent year-on-year (yoy) to 444.4 billion US dollars, with a debt-to-GDP ratio of 29.9 per cent. The External Debt Statistics of Indonesia (SULNI), released by BI together with the Ministry of Finance, assessed that the external debt position in May 2026 remained manageable, albeit slightly higher than the 2.0 per cent (yoy) growth recorded in April 2026. Executive Director of the BI Communication Department, Ramdan Denny Prakoso, stated that this development was influenced by growth in public external debt, both government and central bank, amid a lower contraction in private external debt. The government’s external debt position in May 2026 was 217.3 billion US dollars, growing 3.7 per cent year-on-year, relatively stable compared to the growth in April 2026. This development was mainly influenced by inflows into international Government Securities (SBN), reflecting sustained investor confidence in Indonesia’s economic prospects, amid net maturing payments of government foreign loans. The government remains committed to maintaining credibility by fulfilling principal and interest payment obligations on time, as well as 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 continues to be directed to support productive sector financing while considering the sustainability of external debt management. By economic sector, government external debt was utilised, among others, to support the health services and social activities sector (22.0 per cent of total government external debt); government administration, defence, and compulsory social security (20.6 per cent); education services (16.2 per cent); construction (11.5 per cent); and transportation and warehousing (8.5 per cent). Almost all government external debt is long-term. Meanwhile, the increase in Bank Indonesia’s external debt was driven by a rise in 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 the impact of persistently high global uncertainty. On the other hand, the private external debt position in May 2026 was recorded at 195.9 billion US dollars, experiencing a contraction of 0.1 per cent year-on-year. This contraction was more limited compared to the 0.5 per cent contraction in April 2026. This development was mainly driven by the financial corporations borrower group, which recorded a year-on-year contraction of 0.8 per cent, lower than the 5.0 per cent contraction in April 2026. By economic sector, the largest private external debt originated from the manufacturing sector; financial services and insurance; electricity, gas procurement; and mining and quarrying, with a share reaching 79.9 per cent of total private external debt. Private external debt remains dominated by long-term debt, with a share of 74.9 per cent of total private external debt. Overall, Indonesia’s external debt is dominated by long-term debt, with a share reaching 83.9 per cent of the total. To maintain a sound external debt structure, Bank Indonesia and the Government continue to strengthen coordination in monitoring external debt developments. Indonesia will continue to optimise the role of external debt to support development financing and encourage sustainable national economic growth, while minimising risks that could affect economic stability.