Link : External Debt Statistics of Indonesia - January 2010

1. The history of the events surrounding mid-1997 clearly shows that asymmetrical information on external debt cost Indonesia dearly in term of economic consequences. The bitter experience eventually leads to realization to importance of external debt monitoring as one of means to measure risk posed to the economy.

2. Data and information are essential ingredient to construct Indonesian external data monitoring. Within this setting, awareness on the dangers of runaway foreign borrowing could be build amongst economic agents and policy makers. Undoubtedly, a credible data and information on foreign debt is the way forward to promote the awareness of risk of uncontrollable foreign borrowing.

3. To provide transparency of information on developments in Indonesia's external debt, Bank Indonesia has taken up a joint initiative with the Ministry of Finance in publishing the Indonesia External Debt Statistics. This publication presents data on external borrowings by the Central Government, Bank Indonesia and private sector.

4. The joint publication of debt statistics of BI and MoF has its origin from the need of a comprehensive, comparable and reliable information on Indonesia foreign debt. Underscoring this need, for authorities and market practitioners, is the importance to measure the potential of external debt risk that can trigger vulnerability in the Indonesian economy.

5. In this publication, external debt is defined as debt owed by residents domiciled within an economic territory to non-residents. The concept and terminology used for external debt refers to the IMF's External Debt Statistics: Guide for Compilers and Users (2003). This differs slightly from the concept applied in the external debt publications found in the Indonesian Economic Monetary Statistics (SEKI), which does not cover currency and deposits and other liabilities held by non-residents. The data in the SEKI will be subsequently adjusted in future publications.

6. The material in this publication covers commitments, positions, flows (disbursements and debt service payments) and vulnerability indicators. Indonesia's external debt position is presented by category of borrower (Government, Bank Indonesia and private sector), economic sector, currency, creditor type, instrument and both original and remaining tenor. Accordingly, these External Debt Statistics can be used to measure developments in various economic sectors related to absorption of external debt, measure short-term debt risk and anticipate foreign currency demand to cover debt payments.

7. The key advantage of this publication of the Indonesia External Debt Statistics lies in the completeness, reliability and accountability of its data. Data on the Government external debt position is sourced from the Debt Management and Analysis System (DMFAS) used by the Ministry of Finance for management of government external borrowings. In regard to private external debt, data is sourced from the External Debt Information System (EDIS) used by Bank Indonesia for monitoring of private sector external debt. To afford stakeholders greater access to external debt data, this publication will be disseminated in print and in electronic form on the websites operated by the Investor Relations Unit (IRU) and Debt Management Office, with publication scheduled for each month.

8. The publication of the Indonesia External Debt Statistics is expected to bolster the untiring efforts by the Government and Bank Indonesia in promoting good governance in Indonesia's external debt management. Similarly, the publication is expected to become a key reference for domestic and international stakeholders and thus offer an objective assessment of Indonesia's external debt condition.