Indonesia's External Debt Reaches Rp 7,627 Trillion in Q1 2026, BI: Growth Slowing
JAKARTA — Indonesia’s external debt position in the first quarter of 2026 increased compared to the previous quarter, albeit at a slower growth rate. Bank Indonesia (BI) recorded that Indonesia’s external debt during this period reached US$433.4 billion, equivalent to Rp 7,627.84 trillion, up from US$431.7 billion in the preceding quarter.
On a year-on-year basis, external debt grew by 0.8%, which is lower than the 1.9% growth recorded in the previous quarter. The Head of Bank Indonesia’s Communication Department, Ramdan Denny Prakoso, stated that Indonesia’s external debt position remains stable amidst global dynamics.
He revealed that the increase in external debt during this period was driven by a rise in public sector debt, whereas private sector debt experienced a decline. The increase in public sector debt was attributed to higher debt from Bank Indonesia, influenced by increased foreign investor ownership of monetary instruments issued by BI for monetary operations to maintain Rupiah exchange rate stability against rising global uncertainty.
“The development of government external debt was primarily influenced by foreign capital inflows into international Government Securities (SBN), as investor confidence in Indonesia’s economic prospects remains maintained,” he explained.
Regarding the public sector, government external debt was recorded at US$214.7 billion, growing by 3.8% year-on-year, slightly lower than the 5.5% growth in the previous month. This development was mainly influenced by the debt securities position. By economic sector, government debt was utilised to support health services and social activities (22.1%); government administration, defence, and compulsory social security (20.2%); education services (16.2%); construction (11.5%); and transport and warehousing (8.5%). “The government external debt position is dominated by long-term debt, accounting for 99.99% of total government external debt,” he added.
Meanwhile, private sector external debt during the same period was recorded at US$191.4 billion, a decrease of 1.8% year-on-year. This decline was driven by the financial corporations and non-financial corporations groups, which fell by 3.6% and 1.3% respectively. By economic sector, the largest portion of private external debt originated from the manufacturing industry, financial and insurance services, electricity and gas supply, and mining and quarrying, accounting for 80.4% of total private external debt. “Private external debt is dominated by long-term debt, with a share of 76.6% of the total private external debt,” said Denny.
He emphasised that, overall, the structure of Indonesia’s external debt remains healthy. This is reflected in the external debt-to-GDP ratio, which stood at 29.5%, and the dominance of long-term debt, which accounts for 85.4% of the total external debt. “To ensure the external debt structure remains healthy, BI and the government continue to strengthen coordination in monitoring external debt developments,” he concluded.