RRI.CO.ID, Jakarta – Bank Indonesia (BI) reported that Indonesia’s external debt stood at USD 444.4 billion in May 2026, marking a 2.1 percent year-on-year increase. The pace was slightly higher than the 2.0 percent growth recorded in April.

“This development was influenced by growth in public external debt -- both government and central bank -- amid a slower contraction in private external debt,” said BI Executive Director of the Communications Department, Ramdan Denny Prakoso, in Jakarta on Wednesday, July 15, as quoted on BI’s official website.

Government external debt reached USD 217.3 billion in May, up 3.7 percent year-on-year, a figure that was relatively stable compared to April.

Denny noted that inflows into international Government Securities (SBN) reflected investor confidence in Indonesia’s economic outlook, even as the government made net payments on maturing debt.

The government reaffirmed its commitment to maintaining credibility by meeting principal and interest obligations on time, while prudently, measuredly, and flexibly managing external debt to ensure efficient financing.

“The use of external debt continues to be directed toward supporting financing for productive sectors while maintaining sustainability,” Denny said.

By sector, government external debt was allocated to Health Services and Social Activities (22.0 percent), General Government, Defense, and Mandatory Social Security (20.6 percent), Education Services (16.2 percent), Construction (11.5 percent), and Transportation and Warehousing (8.5 percent). Most of the debt is long-term.

Meanwhile, BI’s external debt rose due to increased non-resident holdings of Rupiah-denominated Securities (SRBI). “This is consistent with pro-market monetary operations and efforts to maintain rupiah exchange rate stability amid persistently high global uncertainty,” Denny added.

Private-sector external debt stood at USD 195.9 billion, contracting 0.1 percent year-on-year. The decline was narrower than the 0.5 percent contraction in April, driven mainly by the financial corporations’ lending group, which contracted 0.8 percent, compared with a 5.0 percent contraction in April.

The largest share of private debt came from Manufacturing, Financial Services and Insurance, Electricity and Gas Supply, and Mining and Quarrying, accounting for 79.9 percent of the total. Long-term debt dominated, making up 74.9 percent.

Indonesia’s external debt structure remains sound, supported by prudential management principles.

The external debt-to-GDP ratio stood at 29.9 percent, with long-term debt accounting for 83.9 percent of the total. BI and the government continue to strengthen coordination to monitor debt developments, aiming to optimize external debt for development financing and sustainable economic growth while minimizing risks to stability. ***