RRI.CO.ID, Jakarta - Indonesia’s external debt slowed in early 2026, reflecting what Bank Indonesia (BI) described as a financing structure that remains controlled and healthy.

BI reported that external debt in the first quarter of 2026 (Q1‑2026) stood at USD 433.4 billion, up 0.8 percent year‑on‑year. This growth was slower than the 1.9 percent increase in Q4‑2025, driven by both government and private sector debt.

BI’s Executive Director of the Communication Department, Ramdan Denny Prakoso, said government external debt in Q1‑2026 rose 3.8 percent year‑on‑year to USD 214.7 billion. “This growth was lower than the 5.5 percent increase recorded in Q4‑2025,” Denny said in a statement in Jakarta on Monday, May 18, citing BI’s official website.

He explained that government debt growth was mainly influenced by foreign capital inflows into international Government Securities (SBN), in line with investors’ continued confidence in Indonesia’s economic outlook.

“As one of the financing instruments for the State Budget, government external debt is managed carefully, prudently, and accountably, with its use consistently directed toward priority spending and supporting economic growth momentum,” Denny said.

Government external debt is allocated to several sectors: Health Services and Social Activities (22.1 percent), General Government, Defense and Mandatory Social Security (20.2 percent), Education Services (16.2 percent), Construction (11.5 percent), and Transportation and Warehousing (8.5 percent). Long‑term debt dominates, accounting for 99.99 percent of total government external debt.

Meanwhile, private sector external debt in Q1‑2026 stood at USD 191.4 billion, down from USD 194.2 billion in Q4‑2025, representing a 1.8 percent annual contraction. “This decline was driven by contractions in financial corporations (‑3.6 percent) and nonfinancial corporations (‑1.3 percent),” Denny said. Long‑term debt accounted for 76.6 percent of private external debt.

BI also reported that the external debt‑to‑GDP ratio fell from 30 percent to 29.5 percent. National external debt remains dominated by long‑term debt, which made up 85.4 percent of the total.

BI and the government continue to strengthen coordination to ensure the debt structure remains healthy. “The role of external debt will continue to be optimized to support development financing and drive sustainable national economic growth, while minimizing risks to economic stability,” said Denny. ***