Indonesia's External Debt Rises to US$444.4 Billion in May 2026

Indonesia’s external debt position climbed to US$444.4 billion in May 2026, reflecting a 2.1% year-on-year growth, according to Bank Indonesia. This marks a slight acceleration from the 2.0% growth recorded in April 2026. The increase was primarily driven by the public sector, encompassing both government and central bank borrowing.

Government external debt stood at US$217.3 billion, growing 3.7% year-on-year, a pace relatively stable compared to the previous month. This development was mainly influenced by inflows into international government securities, reflecting sustained investor confidence in Indonesia’s economic prospects. The government maintained its commitment to prudent debt management, ensuring timely principal and interest payments. The majority of government external debt is long-term and was allocated to productive sectors, including health and social services (22.0%), mandatory government administration and defence (20.6%), education (16.2%), and construction (11.5%).

Meanwhile, private sector external debt continued to contract, though at a decelerating rate. Private external debt recorded a 0.1% year-on-year contraction in May 2026, an improvement from the 0.5% contraction in April. This was largely due to a slower contraction in borrowing by financial corporations, which shrank by 0.8% year-on-year compared to a 5.0% contraction the previous month.