No. 23/101/DKom
Indonesia's external debt in February 2021 remained manageable. The
external debt at the end of February 2021 was recorded at USD422.6
billion or grew by 4.0% (yoy), higher compared with 2.7% (yoy) in the
previous month. The increase was stemming from the Government's and
private's external debt.
The Government's external debt remained controlled and prudently managed. On
annual basis, the Government's external debt grew by 4.6% (yoy), higher
than the growth in January 2021 of 2.8% (yoy), in line with the efforts
to contain the impact of the Covid-19 pandemic since 2020 and the
acceleration of vaccination, as well as social protection programs in
the first quarter of 2021. The Government has strategies to meet the
2021 state budget (APBN) financing target, including prioritizing and
optimizing domestic financing sources, while external financing is
supplementary. In addition, the Government also prioritizes debt with
medium-long term tenors and actively manages debt portfolios to control
debt costs and risks. The management of Government's external debt is
conducted in prudent and accountable manner to support spending towards
priority sectors, among others, public administration, defense, &
compulsory social security sector (share 17.7% of Government's external
debt), human health & social work activities sector (17.2%),
education sector (16.3%), construction sector (15.3%), and financial
& insurance sector (12.7%). The government's external debt at the
end of February 2021 was registered USD209.2 billion, lower than
USD210.8 billion in the previous month. The external debt position
remains safe and manageable since most of it consisted of long-term
maturity debt, accounted for 99.9% of the total Government's external
debt.
The private's external debt was still dominated by long-term external debt. The
growth of private's external debt was recorded at 3.4% (yoy),
increasing from 2.5% (yoy) in the previous month. Such development was
driven by increasing growth of nonfinancial corporation to 5.9 % (yoy)
from 5.1% (yoy) in the previous month, prompted by the issuance of
global corporate bonds in the mining sector, among others. Meanwhile,
the financial corporation's external debt contracted by 4.9% (yoy),
lower than 6.1% (yoy) contraction in the previous month. Several sectors
with the most significant external debt accounted for 77.3% of total
private external debt were the financial & insurance sector;
electricity, gas, steam & air conditioning supply sector; mining
& drilling sector; and manufacturing sector. With these
developments, the private's external debt at the end of February 2021
was USD210.5 billion, dominated by long-term maturity external debt,
which accounted for 78.0% of the total private's external debt.
The structure of Indonesia's external debt remained healthy, supported by the prudential principle application in its management. Indonesia's
external debt in February 2021 is manageable as reflected in the
maintained ratio of Indonesia's external debt to Gross Domestic Product
(GDP) at around 39.7%, relatively stable compared with 39.6% in the
last month. In addition, the structure of Indonesia's external debt
remained healthy which was indicated by the domination of long-term
maturity debt with an 89.0% share of 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. 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) April 2021 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website
Head of Communication Department
Erwin Haryono
Executive Director
Information about Bank
Indonesia
