Indonesia’s external debt remained manageable in May 2026, with Bank Indonesia (BI) reporting total foreign debt of US$444.4 billion, an annual growth of 2.1% year-on-year compared with 2.0% growth recorded in April.
BI said the increase was mainly driven by growth in public external debt from the government and central bank, while private sector foreign debt continued to record a contraction.
Government external debt stood at US$217.3 billion in May, growing 3.7% year-on-year, supported mainly by inflows into international Government Securities (SBN), reflecting investor confidence in Indonesia’s economic outlook. The government also continued to manage external debt prudently by ensuring timely repayment of principal and interest obligations.
BI said government foreign debt was mainly channelled towards productive sectors, including health services and social activities, which accounted for 22% of total government external debt, followed by public 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%.
Meanwhile, private external debt declined 0.1% year-on-year to US$195.9 billion, although the contraction was narrower compared with the 0.5% decline in April. The moderation was mainly supported by a smaller decline in financial corporations’ external debt.
BI said Indonesia’s external debt structure remained healthy, supported by prudent management practices. The external debt-to-gross domestic product (GDP) ratio stood at 29.9% in May, with long-term debt accounting for 83.9% of total external debt.
The central bank said it would continue coordinating with the government to monitor external debt developments while optimising its role in supporting sustainable economic growth and minimising risks to economic stability.
