Jakarta. Indonesia’s external debt rose 4.4% year-on-year to $453.4 billion (Rp 8,098 trillion) in the second quarter of 2026, driven by higher public-sector debt while private-sector borrowing continued to shrink, Bank Indonesia (BI) said.

Bank Indonesia Communication Department Executive Director Ramdan Denny Prakoso said the increase reflected higher government and central bank debt, while the decline in private-sector borrowing moderated.

Public-sector external debt reached $216.3 billion, growing 2.9% year-on-year, down from 3.8% growth in the first quarter. The increase was mainly driven by inflows into government securities, which BI said reflected continued investor confidence in Indonesia’s economic outlook.

Government external debt was concentrated in health services and social activities, public administration and defense, education, construction, and transportation and warehousing, which together accounted for the bulk of government borrowing. Almost all government external debt was long-term.

“The government remains committed to managing external debt prudently, measurably and flexibly to ensure efficient and optimal financing,” Prakoso said.

Central bank external debt also increased, driven mainly by higher nonresident holdings of Bank Indonesia Rupiah Securities (SRBI), in line with market-oriented monetary operations and efforts to maintain rupiah stability amid renewed global uncertainty.

Private-sector external debt stood at $194.6 billion, down 0.6% year-on-year, compared with a 1.3% contraction in the first quarter. The improvement was mainly due to a slower decline in external debt held by financial corporations, which contracted 3.4%, versus 6.3% previously.

Manufacturing; financial and insurance services; electricity and gas supply; and mining and quarrying accounted for 79.4% of private-sector external debt, while long-term debt made up 75.7%.

Overall, external debt remained at 30.6% of GDP in the second quarter, with long-term borrowing accounting for 82.1% of the total.

“Indonesia will continue to optimize external debt to support development financing and sustainable economic growth while minimizing risks to economic stability,” Prakoso said.

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