Indonesia's External Debt Surges to Rp8,089 Trillion
Bank Indonesia recorded Indonesia’s external debt position at US$453.4 billion, or approximately Rp8,089.1 trillion, growing 4.4% year-on-year. This figure is higher than the external debt position in May 2026, which stood at US$444.4 billion, or around Rp7,928.5 trillion.
Executive Director of Bank Indonesia’s Communication Department, Ramdan Denny Prakoso, stated that external debt developments in the second quarter of 2026 remained well managed. “Indonesia’s external debt remains under control, supported by an increase in public external debt and a lower contraction in private external debt,” Denny said in an official statement on Tuesday (18/8).
Government external debt in the second quarter of 2026 was recorded at US$216.3 billion, or approximately Rp3,860.4 trillion, growing 2.9% year-on-year. This growth was lower than the 3.8% year-on-year growth recorded in the first quarter of 2026. The development of government debt was mainly influenced by inflows into Government Securities (SBN), reflecting investor confidence in Indonesia’s maintained economic prospects.
“The government remains committed to maintaining credibility by fulfilling principal and interest payment obligations in a timely manner,” Denny said. The government also continues to manage external debt prudently, measurably, and flexibly to achieve efficient and optimal financing. As a component of state budget financing, the use of external debt is directed towards supporting productive sectors while considering the sustainability of external debt management.
By economic sector, government external debt was utilised to support the Health Services and Social Activities sector at 22.0% of total government external debt, Government Administration, Defence, and Compulsory Social Security at 20.6%, Education Services at 16.2%, Construction at 11.5%, and Transportation and Warehousing at 8.5%. “The government’s external debt position is relatively safe and under control because almost all government external debt is long-term debt,” Denny said.
Meanwhile, the increase in central bank external debt was mainly driven by higher non-resident ownership of Bank Indonesia Rupiah Securities (SRBI) monetary instruments. This is in line with pro-market monetary operations and efforts to maintain rupiah exchange rate stability amid renewed global uncertainty.
Private external debt continued to contract. The private external debt position in the second quarter of 2026 was recorded at US$194.6 billion, or approximately Rp3,471.9 trillion, contracting 0.6% year-on-year, lower than the 1.3% year-on-year contraction in the first quarter of 2026. This development was mainly driven by financial institution external debt, which contracted 3.4% year-on-year, lower than the 6.3% year-on-year contraction in the first quarter of 2026. By economic sector, private external debt mainly originated from the manufacturing industry, financial and insurance services, electricity and gas procurement, and mining and quarrying, with a share reaching 79.4% of total private external debt.
“Private external debt remains dominated by long-term debt with a share reaching 75.7% of total private external debt,” he said.
Denny then emphasised that Indonesia’s external debt structure remains healthy, supported by the application of prudential principles in its management. This is reflected in the ratio of Indonesia’s external debt to Gross Domestic Product (GDP), which was recorded at 30.6% in the second quarter of 2026 and dominated by long-term external debt with a share reaching 82.1% of the total.
Denny said Bank Indonesia and the government continue to strengthen coordination in monitoring Indonesia’s external debt developments and optimising the role of external debt to support development financing and drive sustainable national economic growth.