Revealed! These Two Superpowers are Indonesia's Primary Creditors in Q1-2026

Jakarta, CNBC Indonesia - The United States and China continue to be the primary nations providing significant debt credit to Indonesia. Bank Indonesia (BI) noted that Indonesia’s external debt position in the first quarter of 2026 experienced slowing growth, with the total position recorded at US$433.4 billion. This figure represents a year-on-year growth of 0.8%, a deceleration compared to the 1.9% growth recorded in the fourth quarter of 2025.

The US and China were the two leading creditors, with debt amounts of US$27.50 billion and US$25.32 billion respectively at the end of March 2026. Notably, the debt positions from both nations decreased compared to the previous month, which stood at US$27.81 billion and US$25.66 billion respectively.

According to analysis by the CNBC Indonesia Research Team, the US and China provide substantial loans to Indonesia for various strategic and economic reasons. A primary driver is the strengthening of bilateral relations and the expansion of their influence within the Southeast Asian region. By providing loans, both nations can foster economic cooperation and investment with Indonesia, which remains one of the largest economies in the region.

Furthermore, debt from the US and China is frequently utilised to support infrastructure projects and development in Indonesia. China, for instance, provides significant loans for large-scale projects such as the construction of motorways, ports, and high-speed railways. Meanwhile, the US contributes more through investments and financial assistance directed towards the technology and energy sectors.

Another factor influencing these lending patterns is global economic interest. Indonesia possesses vital natural resources, such as coal, palm oil, and nickel, which serve as primary commodities in international trade. By extending credit, both the US and China can secure access to these resources and strengthen trade ties with Indonesia. However, recent trends indicate that both the United States and China are beginning to reduce their lending to Indonesia due to global trade tensions and shifts in investment strategies.