Analysis: Foreign debt climbs to Rp 8 quadrillion amid weak loan usage
Indonesia’s external debt has continued to rise and reached a new high of Rp 8 quadrillion ($444 billion) in May 2026. The increase was primarily driven by government and central bank debt, which accounted for 55.9 percent of total external debt, or US$248.5 billion, after growing 3.89 percent year-on-year (yoy).
Indonesia's external debt has hit a new high of Rp 8 quadrillion ($444 billion) in May 2026, with government and central bank debt accounting for 55.9% of the total. Private sector external debt, however, contracted slightly by 0.12%. The surge in debt is primarily driven by public sector financing needs. Government debt grew by 3.67% year-on-year, mainly to support health services, social assistance, education, construction, and transportation.
Central bank debt increased by 5.44% year-on-year, driven by higher foreign ownership of Bank Indonesia Rupiah Securities. Short-term private sector debt rose sharply by 9.37% year-on-year, indicating higher near-term financing requirements among businesses.
Written by urgent.news from The Jakarta Post Academia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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