Indonesia’s external debt (ULN) rose to USD 437.9 billion, equivalent to IDR 7,488 trillion (assuming an exchange rate of IDR 17,100 per USD) as of February 2026, according to Bank Indonesia, marking an increase compared to both the previous month and the same period last year. 

“On an annual basis, Indonesia’s external debt in February 2026 grew by 2.5% (yoy), higher than the growth in the previous month of 1.7% (yoy),” Bank Indonesia stated in its official release. 

By creditor country, debt from China recorded the highest increase, rising 8.4% year-on-year to USD 25.57 billion. Meanwhile, debt from Singapore, which remains the largest, declined slightly from USD 56.06 billion to USD 53.96 billion. 

The overall increase in external debt was mainly driven by public sector borrowing, particularly by the central bank, in line with capital inflows into monetary instruments, namely Bank Indonesia Rupiah Securities (SRBI). 

The rise in Bank Indonesia’s external debt was driven by higher non-resident ownership of monetary instruments issued by the central bank. This reflects pro-market monetary operations and efforts to maintain rupiah exchange rate stability amid rising global uncertainty. 

Government external debt also increased by 5.5% year-on-year to USD 215.9 billion. However, this growth was slightly lower than the previous month’s 5.6% (yoy). 

“The development of the government’s external debt position was mainly influenced by a decline in debt securities,” Bank Indonesia stated. 

By economic sector, government external debt was used, among others, to support Health Services and Social Activities (22.0% of total government external debt); Public Administration, Defense, and Compulsory Social Security (20.3%); Education Services (16.2%); Construction (11.6%); and Transportation and Storage (8.5%). 

“The government’s external debt position is dominated by long-term debt, accounting for 99.98% of total government external debt,” Bank Indonesia stated. 

On the other hand, private external debt declined by 0.7% year-on-year to USD 193.7 billion. This was influenced by reduced borrowing from financial corporations and non-financial corporations, which declined by 2.8% (yoy) and 0.2% (yoy), respectively. 

By sector, the largest share of private external debt originated from Manufacturing; Financial and Insurance Services; Electricity and Gas Supply; and Mining and Quarrying, accounting for 80.3% of the total. 

Private external debt is also dominated by long-term debt, which accounts for 76.0% of the total. 

According to Bank Indonesia, the structure of Indonesia’s external debt remains sound, supported by prudent management principles. This is reflected in an external debt-to-GDP ratio of 29.8% and the dominance of long-term debt, which accounts for 84.9% of total external debt. 

This article is published in partnership with Katadata 

Original article here