Indonesia's Foreign Debt Reaches Rp7.394 Trillion in January

Bank Indonesia (BI) recorded Indonesia’s foreign debt position at US$434.7 billion or Rp7.394 trillion (at an exchange rate of Rp17,010 per US dollar) in January 2026, representing a 1.7 per cent increase compared with the same period last year. This growth was lower than the 1.8 per cent year-on-year growth recorded in December 2025.

The Executive Director of Bank Indonesia’s Communications Department, Ramdan Denny Prakoso, stated that the foreign debt development was primarily driven by public sector foreign debt. BI recorded the government’s foreign debt position growing 5.6 per cent year-on-year to US$216.3 billion in January 2026, a higher growth rate than December 2025’s 5.5 per cent year-on-year expansion.

“The development of foreign debt in January 2026 was influenced by drawdowns of foreign loans to support the implementation of government programmes and projects, as well as inflows of foreign capital into international Government Securities (SBN), as investor confidence in Indonesia’s economic prospects remained intact amid rising global financial market uncertainty,” Denny said in an official statement on Monday, 16 March 2026.

Based on economic sectors, government foreign debt usage was allocated to support the Health Services and Social Activities sector (22 per cent of total government foreign debt); Government Administration, Defence, and Mandatory Social Security (20.3 per cent); Education Services (16.2 per cent); Construction (11.6 per cent); and Transport and Warehousing (8.5 per cent). Denny stated that the government’s foreign debt position was dominated by long-term debt, accounting for 99.98 per cent of total government foreign debt.

Meanwhile, private sector foreign debt was recorded at US$193 billion in January 2026, declining from US$194 billion in December 2025. On an annual basis, private sector foreign debt contracted by 0.7 per cent year-on-year, a larger decline compared to the previous month’s 0.2 per cent year-on-year contraction.

“The decline in private sector foreign debt was driven by foreign debt of non-financial corporations,” Denny said. Based on economic sectors, the largest private sector foreign debt came from the Manufacturing Industry; Financial Services and Insurance; Electricity and Gas Supply; and Mining and Quarrying sectors, collectively accounting for 80.1 per cent of total private sector foreign debt. Private sector foreign debt remained dominated by long-term debt, representing 76.2 per cent of total private sector foreign debt.

Denny claimed that Indonesia’s foreign debt structure remained healthy, supported by the application of prudent principles in its management. According to him, this was reflected in Indonesia’s foreign debt-to-GDP ratio declining to 29.6 per cent in January 2026 from 29.9 per cent in December 2025. Furthermore, foreign debt was dominated by long-term debt, accounting for 85.6 per cent of total foreign debt.