Indonesia’s External Debt Rises 4.4 Pct To US$453.4 Bln In Q2 2026 - BI

JAKARTA, Aug 18 (Bernama) -- Indonesia’s external debt rose 4.4 per cent year-on-year (y-o-y) to US$453.4 billion (US$1=RM4.05) in the second quarter of 2026, driven by higher public external debt amid a slower contraction in private-sector debt.

Bank Indonesia (BI) Communication Department executive director Ramdan Denny Prakoso said the increase in public external debt, which comprises government and central bank debt, came as the government’s external debt stood at US$216.3 billion during the quarter.

Of the public external debt, he said government debt grew 2.9 per cent y-o-y, moderating from 3.8 per cent in the first quarter, primarily due to capital inflows into government securities (SBN) amid sustained investor confidence in Indonesia’s economic outlook.

“The government remains committed to maintaining credibility by fulfilling principal and interest payment obligations on time, while managing external debt prudently, measurably, and flexibly to achieve efficient and optimal financing,” he said in a statement on Tuesday.

As one of the financing instruments of the State Revenue and Expenditure Budget (APBN), he said government external debt continued to be directed towards productive sectors while maintaining sustainable external debt management.

According to Ramdan, government external debt was mainly directed towards human health and social activities, accounting for 22.0 per cent of the total, followed by public administration, defence and compulsory social security at 20.6 per cent, education at 16.2 per cent, construction at 11.5 per cent, and transportation and storage at 8.5 per cent.

He said nearly all government external debt had a long-term maturity profile, while the increase in central bank external debt was mainly driven by higher non-resident holdings of Bank Indonesia Rupiah Securities (SRBI), in line with pro-market monetary operations and efforts to maintain rupiah exchange rate stability amid heightened global uncertainty.

In contrast, Ramdan said private external debt continued to decline, although at a slower pace, contracting 0.6 per cent y-o-y to US$194.6 billion in the second quarter compared with a 1.3 per cent contraction in the first quarter.

He said the narrower contraction was mainly attributable to external debt at financial corporations, which declined 3.4 per cent y-o-y compared with a 6.3 per cent contraction in the preceding quarter.

By economic sector, Ramdan said manufacturing, financial and insurance services, electricity and gas supply, as well as mining and quarrying collectively accounted for 79.4 per cent of private external debt, while long-term maturities accounted for 75.7 per cent.

Overall, he said Indonesia’s external debt structure remained sound, with the external debt-to-gross domestic product (GDP) ratio at 30.6 per cent in the second quarter, while long-term debt accounted for 82.1 per cent of total external debt.

Ramdan said BI and the government would continue strengthening coordination to monitor external debt developments, while optimising the role of external debt in supporting development financing and sustainable national economic growth and minimising risks to economic stability.

-- BERNAMA