Not China! This Is Indonesia's Number One Creditor
Jakarta, CNBC Indonesia - Bank Indonesia (BI) recorded that Indonesia’s External Debt (ULN) position in the second quarter of 2026 remained manageable. Indonesia’s ULN position was recorded at US$453.4 billion, or grew 4.4% year-on-year (yoy).
This development was driven by an increase in public external debt, both from the government and the central bank, amid a contraction in private external debt growth at a lower level than the previous period.
The government’s external debt position in the second quarter of 2026 was recorded at US$216.3 billion, or grew 2.9% (yoy) - slowing compared to growth in the first quarter of 2026 of 3.8% (yoy).
Meanwhile, the increase in central bank external debt was mainly driven by increased non-resident investor holdings 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.
On the other hand, the private external debt position in the second quarter of 2026 was recorded at US$194.6 billion, or contracted 0.6% (yoy) - lower than the 1.3% (yoy) contraction in the first quarter of 2026.
This development was mainly driven by external debt of financial corporations which contracted 3.4% (yoy), improving compared to the 6.3% (yoy) contraction in the previous quarter.
If traced, Indonesia’s external debt of US$453.4 billion at the end of 2025 largely originated from creditor countries with a value of US$210.40 billion, followed by international organisations at US$47.18 billion, and others at US$187.45 billion.
Among the countries of origin of Indonesia’s external debt, Singapore was recorded as the main provider with a value of US$51.07 billion in the second quarter of 2026. This was followed by the United States at US$29.53 billion and China at US$25.69 billion in the second quarter of 2026.
Meanwhile, based on institutions or organisations, the largest loans came from the International Bank for Reconstruction and Development (IBRD) owned by the World Bank at US$21.32 billion, the Asian Development Bank (ADB) at US$12.23 billion, and the IMF at US$8.72 billion.