Jakarta. Indonesia’s external debt rose to $439.8 billion in April, with higher government borrowing offsetting a continued decline in private-sector debt, while the country’s debt indicators remained within prudent levels.

The country’s external debt grew 1.9% year-on-year in April, accelerating from an annual growth of 1.0% in March, according to Bank Indonesia.

Government external debt reached $216.4 billion in April, rising 3.7% from a year earlier, slightly slower than the 3.8% growth recorded in March.

“The moderation was mainly driven by slower growth in outstanding external loans,” said Ramdan Denny Prakoso, executive director of communications at Bank Indonesia.

Foreign investors continued to record net inflows into government bonds, reflecting sustained confidence in Indonesia’s economic outlook, the central bank said.

As one of the government’s financing instruments for the state budget, external debt “continues to be directed toward supporting productive sectors while maintaining debt sustainability,” Ramdan said.

Health services and social activities accounted for the largest share of government external debt utilization at 22%, followed by public administration, defense, and mandatory social security at 20.5%, education services at 16.2%, construction at 11.5%, and transportation and warehousing at 8.5%.

Nearly all government external debt, or 99.99%, consisted of long-term obligations.

Private external debt continued to contract, although at a slower pace. Outstanding private external debt totaled $193.2 billion in April, down 0.7% year-on-year, following a 1.4% contraction in March.

The decline was primarily driven by financial corporations, whose external debt shrank 5.0% annually, improving from a 6.3% contraction in the previous month.

Manufacturing, financial and insurance services, electricity and gas supply, and mining remained the largest contributors to private external debt, accounting for 79.6% of the total. Long-term debt represented 75.8% of overall private external debt.

“Indonesia’s external debt structure remains healthy, supported by the prudent application of debt management principles,” Ramdan said.

The country’s external debt-to-GDP ratio remained stable at 29.6% in April, while long-term debt accounted for 84.5% of total external debt.

Bank Indonesia said it would continue coordinating with the government to monitor external debt developments and optimize the use of external financing to support sustainable economic growth while mitigating risks to macroeconomic stability.