Indonesia’s External Debt Growth in August 2020 Increased - Bank Sentral Republik Indonesia
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October 27, 2020

Indonesia’s external debt increased. The external debt was recorded at USD413.4 billion at the end of August 2020, consisting of public debt (Government and Central Bank) of USD203.0 billion and private debt (including state-owned enterprises) of USD210.4 billion. Indonesia’s external debt grew 5.7% (yoy), higher than 4.2% (yoy) in the previous month, stemming from net drawing external debt, both from the Government and private sector. In addition, the Rupiah appreciation against the US dollar also contributed to an increase in Rupiah-denominated external debt.

The government’s external debt growth increased in August 2020. The government’s external debt position was recorded at USD200.1 billion at the end of August 2020 or grew by 3.4% (yoy), higher compared with 2.3% (yoy) in July 2020. Such development was driven by the partial withdrawing of loans commitment from multilateral agency to support Indonesia‘s COVID-19 pandemic handling and the National Economic Recovery program. The management of government’s external debt is conducted in a prudent and accountable manner to support government spending towards priority sectors, among others, human health & social work activities sector (share 23.7% of external debt), construction sector (16.5%), education sector (16.5%), public administration, defense, & compulsory social security sector (11.8%), and financial & insurance sector (11.6%).

Private’s external debt also accelerated in August 2020. At the end of August 2020, the private sector’s external debt grew at 7.9% (yoy), up from 6.2% (yoy) in July 2020. The increase was influenced by nonfinancial corporation external debt and financial corporation external debt which grew by 10.3% (yoy) and 0.4% (yoy), respectively. Most of the external debt fund was used to finance corporate investment activities. Several sectors with the most significant external debt share amounted to 77.5% of total private external debt, are the financial & insurance sector; electricity, gas, steam & air conditioning supply sector; mining & drilling sector; and manufacturing sector.

Indonesia's external debt maintained a healthy structure supported by the prudential principle application in its management. Indonesia's external debt to Gross Domestic Product (GDP) ratio in August 2020 is 38.5%, relatively stable than 38.2% in the previous month. The debt structure remained dominated by long-term debt, accounted for 89.0% of the total external debt. In close coordination with the government, Bank Indonesia continues to monitor external debt by promoting the prudential principle application in its management to maintain a solid external debt structure. Furthermore, external debt’s role will also be optimized to support development financing and stimulate economic recovery by minimizing the risks that may affect macroeconomic stability.

The complete data on the latest Indonesia’s external debt and its metadata can be obtained in the publication of Indonesia's External Debt Statistics (SULNI) October 2020 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website. 

Head of Communication Department
Onny Widjanarko
Executive Director 


Information on Bank Indonesia
Tel. 021-131, email: bicara@bi.go.id

 

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