Jakarta. Indonesia’s external debt edged higher in the first quarter of 2026, driven by government borrowing, although the central bank said the country’s debt profile remained healthy with a lower debt-to-GDP ratio and a continued dominance of long-term liabilities.

Bank Indonesia reported on Monday that the country’s external debt stood at $434 billion, equivalent to around Rp 7.66 quadrillion, in the January-March period. The figure rose 0.5% from $431.7 billion in the fourth quarter of 2025 (Q4-2025) and was up 0.8% year-on-year from $430.4 billion in the same period last year.

“The structure of Indonesia’s external debt remains healthy, supported by prudent management principles,” Bank Indonesia Communications Department Head Ramdan Denny Prakoso said in a statement.

The ratio of external debt to gross domestic product declined to 29.5% in the first quarter of 2026 from 30% in the previous quarter, while long-term debt accounted for 85.4% of the total outstanding debt.

Bank Indonesia and the government will continue strengthening coordination in monitoring external debt developments to maintain a sound debt structure, Ramdan said.

“The role of external debt will also continue to be optimized to support development financing and encourage sustainable national economic growth. These efforts are being carried out while minimizing risks that could affect economic stability,” he said.

The central bank said the movement in external debt was influenced by both public and private sector borrowing.

Government external debt reached $214.7 billion in the first quarter, growing 3.8% annually, although slower than the 5.5% growth recorded in the previous quarter.

Bank Indonesia attributed the increase partly to foreign capital inflows into international government bonds amid sustained investor confidence in Indonesia’s economic outlook.

The central bank said government debt continued to be managed carefully, measurably, and accountably, with borrowing directed toward priority spending and efforts to capitalize on economic growth momentum.

By sector, government external debt was mainly allocated to health and social services, which accounted for 22.1% of total government debt, followed by public administration, defense, and compulsory social security at 20.2%; education services at 16.2%; construction at 11.5%; and transportation and warehousing at 8.5%.

“Government external debt remains dominated by long-term borrowing, which accounted for 99.99% of total government external debt,” Ramdan said.

Meanwhile, private external debt fell to $191.4 billion in the first quarter from $194.2 billion in the previous quarter, contracting 1.8% year-on-year.

The decline was recorded in both financial corporations and non-financial corporations, which posted annual contractions of 3.6% and 1.3%, respectively.

The largest share of private external debt came from the manufacturing sector, financial and insurance services, electricity and gas procurement, and mining and quarrying, which together made up 80.4% of total private external debt.

“Private external debt also remains dominated by long-term debt, with a share of 76.6% of total private external debt,” he added.

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