Indonesia's foreign debt rises to $439.8 billion in April

Indonesia's external debt reached $439.8 billion, equivalent to Rp 7,762.4 trillion, by April 2026, marking a modest increase from the $433.9 billion recorded in March. This figure represents a 1.9% year-on-year growth in foreign debt, accelerating from the 1% growth observed in the preceding month. Bank Indonesia attributed this shift to concurrent increases in both public and private sector foreign liabilities.

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The developments in the position of foreign debt were influenced by foreign debt in the public and private sectors.

The government sector's foreign debt saw a year-on-year growth of 3.7%, a slight deceleration from March's 3.8% increase. Bank Indonesia noted that this slower growth was primarily influenced by a slowdown in foreign borrowing. However, the central bank highlighted that inflows into government securities remained positive, indicating sustained investor confidence in Indonesia's economic outlook.

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The development of government foreign debt was mainly influenced by the position of foreign loans, which grew more slowly. Meanwhile, foreign capital inflows into Government Securities continued to record net inflows, reflecting sustained investor confidence in Indonesia's economic prospects.

Conversely, the private sector continued to reduce its foreign debt, experiencing a 0.7% contraction year-on-year. This contraction was less severe than the 1.4% decrease seen in March. The financial corporations sub-sector, in particular, saw its foreign debt contract by 5.0% annually, an improvement from the 6.3% contraction in the previous month. Despite these fluctuations, Bank Indonesia emphasized that Indonesia's foreign debt structure remains robust, supported by prudent management practices. The debt-to-GDP ratio remained stable at 29.6%, with long-term debt constituting a significant 84.5% of the total.

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Indonesia's foreign debt structure remains healthy, supported by the application of prudent principles in its management.