Jakarta. Indonesia’s external debt rose by $4.5 billion in August 2026 to $459.3 billion, up 5.6% year-on-year, as higher borrowing by the government and Bank Indonesia offset a decline in private-sector debt, the central bank reported on Thursday.

Bank Indonesia’s (BI) Head of Communications Department Ramdan Denny Prakoso said the country’s external debt structure remained healthy, supported by prudent debt management.

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

The debt-to-gross domestic product (GDP) ratio stood at 30.9% in August, with external debt dominated by long-term borrowing. Both government and private-sector external debt were largely concentrated in long-term obligations.

BI and the government would continue to strengthen coordination in monitoring and managing external debt to ensure it supports development financing and sustainable economic growth, Ramdan said.

Government external debt reached $220.9 billion in August, growing 3.3% year-on-year. The increase was influenced by inflows into government securities, reflecting continued investor confidence in Indonesia’s economic outlook, BI said.

“The government remains committed to maintaining credibility by meeting principal and interest payments on time and managing external debt prudently, in a measured and flexible manner to ensure efficient and optimal financing,” Ramdan said.

The increase in central bank external debt was primarily driven by higher non-resident holdings of Bank Indonesia Rupiah Securities (SRBI), in line with its pro-market monetary operations strategy to support rupiah exchange rate stability, Ramdan added.

Meanwhile, private-sector external debt contracted 0.8% year-on-year to $195.6 billion in August, reflecting declines in borrowing by both nonfinancial and financial corporations, which fell 0.8% and 0.6%, respectively.

By economic sector, private external debt was concentrated in manufacturing, financial services and insurance, electricity and gas supply, and mining and quarrying. Together, these sectors accounted for 80.5% of total private-sector external debt.

The government has directed external borrowing toward productive sectors while maintaining debt sustainability, BI said.

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