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Indonesia’s external debt climbs to $453.4 billion

JAKARTA, thekabarnews.com—Indonesia’s external debt climbed to US$453.4 billion in the second quarter of 2026. This was up 4.4 percent from a year earlier, Bank Indonesia said. The increase primarily...

Kusnadi Assaini

August 18, 2026 2 Min Read

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JAKARTA, thekabarnews.com—Indonesia’s external debt climbed to US$453.4 billion in the second quarter of 2026. This was up 4.4 percent from a year earlier, Bank Indonesia said.

The increase primarily reflected higher public-sector external debt, including government and central-bank liabilities. Foreign capital inflows into Indonesian government securities (SBN) also contributed to the expansion, while private-sector external debt remained in contraction.

The latest figure was US$20 billion higher than the US$433.4 billion recorded at the end of the first quarter. Annual growth also accelerated from 0.8 percent in the previous quarter, according to Bank Indonesia’s first-quarter report.

External debt does not refer only to loans denominated in foreign currencies. Under Indonesia’s statistical methodology, rupiah-denominated government bonds and central-bank securities held by nonresidents are also classified as external debt.

Stronger foreign investment in SBN can raise the external-debt total without representing recent US dollar borrowing.

Bank Indonesia previously reported that foreign portfolio investment generated net inflows of US$8.5 billion during the second quarter. These inflows were mainly through SBN and Bank Indonesia Rupiah Securities (SRBI).

Indonesia’s external-debt-to-gross-domestic-product ratio reached 30.6 percent in the second quarter, up from 29.5 percent in the first three months of 2026.





Long-term liabilities accounted for 82.1 percent of the total, down from 85.4 percent in the first quarter.

Despite the decline, long-term debt continued to dominate the overall structure. Immediate refinancing pressure was limited compared with a portfolio concentrated in short-term obligations.

“The structure of Indonesia’s external debt remained healthy, supported by the application of prudential principles in its management,” Bank Indonesia said.

A manageable ratio does not eliminate risk. Debt-servicing costs can rise when global interest rates increase, the rupiah weakens or refinancing conditions become more restrictive.

A weakening of the Indonesian currency can also increase the rupiah value of foreign-currency liabilities, even when the original US dollar debt remains unchanged.

Bank Indonesia said government external debt continued to support productive spending and public services. This included healthcare, social programs, required social security, education, construction and transportation.

In its May 2026 assessment, the central bank reported that healthcare and social activities accounted for 22 percent of the government external-debt allocation.

Public administration, defense and required social security represented 20.6 percent, while education received 16.2 percent.

Private external debt continued to contract. The largest private-sector exposures continued to concentrate in manufacturing, financial and insurance services, electricity and gas, and mining and quarrying.





Bank Indonesia and the government said they would continue coordinating debt monitoring. They would direct external financing toward sustainable economic development while limiting risks to macroeconomic stability.

The central bank publishes detailed figures and methodology through its External Debt Statistics of Indonesia series.

Because foreign-exchange movements and revised reporting can alter historical figures, readers should compare debt trends using the latest official dataset. It is better to use this dataset rather than converting the dollar total with a single daily exchange rate.

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