Indonesia’s foreign debt (ULN) stood at $434.7 billion in January 2026, growing 1.7% year-on-year (yoy), slightly lower than 1.8% yoy in December 2025 (31/01). This stability was mainly driven by the public sector.

Government Debt Continues to Rise

Government foreign debt reached $216.3 billion, growing 5.6% yoy, slightly higher than 5.5% yoy in December 2025 (31/01). The increase was influenced by foreign loans for government programs and international government securities (SBN), showing continued investor confidence amid global financial uncertainty.

“The government’s foreign debt is managed carefully, measured, and accountable, and continues to support priority programs to maintain fiscal sustainability and strengthen the national economy,” the press release said.

By economic sector, government debt was allocated to Healthcare and Social Services (22%), Public Administration, Defense, and Social Security (20.3%), Education (16.2%), Construction (11.6%), and Transportation and Warehousing (8.5%). Almost all government debt (99.98%) is long-term.

Private Sector Debt Declines

Private sector foreign debt decreased to $193.0 billion from $194.0 billion in December 2025, a 0.7% yoy contraction, deeper than 0.2% yoy the previous month (31/01).

The reduction was mainly due to non-financial corporations. The largest private debt sectors were Manufacturing, Financial Services and Insurance, Electricity and Gas Supply, and Mining and Quarrying, which made up 80.1% of private debt. Long-term loans accounted for 76.2% of private foreign debt.

Healthy Debt Structure

Indonesia’s foreign debt structure remains healthy. The debt-to-GDP ratio fell to 29.6% in January 2026 from 29.9% in December 2025. Long-term loans dominate the total foreign debt at 85.6%, reflecting cautious debt management.

Bank Indonesia and the Government continue close coordination to monitor foreign debt. This ensures it supports national development and sustainable economic growth while minimizing risk (31/01).

PHOTO: FREEPIK

This article was created with AI assistance.

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