Indonesia Among Top 10 Lower-Middle-Income Countries with Highest External Debt

In 2020, Indonesia remained among the top 10 lower-middle-income countries with the largest external debt. According to the World Bank's 2022 International Debt Statistics (IDS) report, Indonesia's external debt at the end of 2020 ranked 7th, amounting to US$417.53 billion.

Compared to the previous year's external debt of US$402.08 billion, Indonesia's external debt in 2020 increased by 3.8%. Meanwhile, Indonesia's external debt in 2020, relative to its Gross Domestic Product (GDP), was recorded at 41%, up from 37% of GDP in 2019.

China still held the top position with external debt reaching US$2.35 trillion. India, previously ranked third, rose to second place with external debt reaching US$564.18 billion.

Brazil was overtaken by India, dropping to third place with external debt of US$549.23 billion. Russia, Mexico, and Turkey followed in the subsequent rankings with external debt of US$475.52 billion, US$467.51 billion, and US$435.89 billion, respectively.

The World Bank noted that many lower-middle-income countries were in a vulnerable debt position even before the COVID-19 pandemic. These countries faced challenges with slowing economic growth and high levels of public and external debt.