Indonesia’s External Debt Remained Under Control in Q2‑2026: BI

RRI.CO.ID, Jakarta - Indonesia’s external debt (ULN) remained under control in the second quarter of 2026 (Q2 2026). Bank Indonesia (BI) reported that total external debt reached USD 453.4 billion, growing 4.4 percent year-on-year (yoy).

The increase was driven mainly by higher public-sector external debt, comprising both government and central bank obligations, while the contraction in private-sector external debt eased compared with the previous quarter.

Executive Director of BI’s Communications Department, Ramdan Denny Prakoso, said government external debt reached USD 216.3 billion in Q2 2026.

“This trend in government external debt was primarily influenced by inflows into Government Securities (SBN), reflecting investors’ confidence in Indonesia’s stable economic outlook,” Denny said in a written statement in Jakarta on Tuesday, August 18, 2026, as quoted on BI’s official website.

Government external debt grew 2.9 percent (yoy), slowing from 3.8 percent in Q1 2026.

By economic sector, financing was directed toward Health Services and Social Activities (22.0 percent of total government external debt); 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).

Denny said the government’s external debt position remains safe and well-managed, supported by the fact that nearly all government external debt carries long-term tenors.

Meanwhile, central bank external debt increased in line with rising non-resident holdings of BI Rupiah Securities (SRBI). “This is consistent with pro-market monetary operations and efforts to stabilize the rupiah amid renewed global uncertainty,” he said.

Private-sector external debt stood at USD 194.6 billion, contracting 0.6 percent (yoy). The contraction was milder than the 1.3 percent decline recorded in Q1 2026.

“This development was primarily driven by external debt of financial corporations, which contracted 3.4 percent (yoy), improving from the 6.3 percent contraction in Q1 2026,” Denny said.

Private-sector external debt mainly originated from the manufacturing sector, financial services and insurance, electricity and gas supply, and mining and quarrying. These four sectors accounted for 79.4 percent of total private-sector external debt, with 75.7 percent consisting of long-term debt.

Overall, Indonesia’s external debt structure remains healthy, reflected in an external debt-to-GDP ratio of 30.6 percent. Long-term external debt dominates, accounting for 82.1 percent of total external debt.

BI and the government continue to strengthen coordination to maintain a healthy external debt structure. The aim is to optimize external debt as a source of development financing and support sustainable economic growth while minimizing risks to economic stability. ***