Indonesia's External Debt Rises 4.9 Percent to USD 454.8 Billion in July 2026

RRI.CO.ID, Jakarta - Bank Indonesia (BI) reported that Indonesia’s external debt position in July 2026 remained stable. External debt stood at USD 454.8 billion, relatively unchanged from USD 454.5 billion in June.

Executive Director of BI’s Communications Department, Ramdan Denny Prakoso, said Indonesia’s external debt grew by 4.9 percent year‑on‑year (yoy). “This development was primarily driven by an increase in public external debt amid a decline in private external debt,” Denny said in a statement in Jakarta on Tuesday, September 15, 2026, as quoted on BI’s official website.

Government external debt reached USD 218.4 billion, growing 3.2 percent (yoy). The increase was driven by inflows into international Government Securities (SBN), reflecting sustained investor confidence in Indonesia’s economic outlook.

“The government remains committed to maintaining its credibility by fulfilling principal and interest payments on time, and by managing external debt prudently, in a measured and flexible manner to ensure efficient and optimal financing,” Denny said.

Government external debt is directed toward productive sectors through the State Budget (APBN). The largest allocations were for health and social services (22.0 percent), government administration (20.7 percent), education (16.2 percent), construction (11.5 percent), and transportation and warehousing (8.5 percent).

In contrast, private external debt declined to USD 194.5 billion, contracting 1.2 percent (yoy). The decrease occurred in both non‑financial corporations (down 1.4 percent) and financial corporations (down 0.3 percent).

Manufacturing, financial and insurance services, electricity and gas, and mining and quarrying accounted for 80.6 percent of private external debt. “Private external debt remains dominated by long‑term debt,” Denny said.

The external debt‑to‑GDP ratio stood at 30.7 percent in July. BI stated that the debt structure remains healthy because it is dominated by long‑term loans.

BI and the government continue to strengthen coordination to maintain a sound external debt structure and mitigate risks to economic stability. “These efforts are carried out by minimizing risks that could affect economic stability,” Denny said. ***