No. 23/ 173 /DKom
Indonesia's external debt decreased in May 2021. The
external debt at the end of May 2021 was recorded at USD415.0 billion,
decreased 0.6% (mtm) compare to USD417.6 billion in April 2021 on the
back of the declining Government's external debt. On an annual basis,
external debt in May 2021 grew 3.1% (yoy), lower than the previous
month's growth of 4.9% (yoy).
The Government's external debt recorded a lower position compared to the previous month. The
Government's external debt in May 2021 was recorded at USD203.4
billion, which fell 1.3% (mtm) from last month's position, thus driven a
deceleration in the external debt annual growth to 5.9% (yoy) from 8.6%
(yoy) in April 2021. The decline was in line with the payment of
Government Securities (SBN) and loans in foreign currency maturing in
May 2021. The government is committed to maintaining credibility by
fulfilling debt obligations in a timely manner, as well as managing
external debt in a prudent, credible, and accountable manner. Meanwhile,
the external debt withdrawal in May 2021 is still prioritized to
support the Government's priority spending, including efforts to deal
with Covid-19 and the National Economic Recovery (PEN) program, which
includes the government administration, defense, and mandatory social
security sectors (17.8% of the total government external debt), the
health services sector and social activities (17.2%), the education
services sector (16.3%), the construction sector (15.4%), and the
financial and insurance services sector (12.6%). The position of
Government external debt remains safe and manageable considering that
almost all of it categorized as long-term debt with a 99.9% share of
total government external debt.
The private's external debt growth slowed. The
growth of private's external debt in May 2021 was recorded at 0.5%
(yoy), slowed from 1.4% (yoy) in the previous month. Such development
was driven by a slowdown in the non-financial institutions' external
debt growth to 2.3% (yoy) from 4.5% (yoy) in the previous month. On the
other hand, the external debt growth of financial institutions
contracted by 6.0% (yoy), lower than the 9.0% (yoy) contraction in the
previous month. With these developments, the private's external debt
position in May 2021 was registered at USD208.7 billion, relatively
stable than the previous month's position. Several sectors with the most
significant external debt, namely the financial & insurance sector;
electricity, gas, steam & air conditioning supply sector; mining
& drilling sector; and manufacturing sector, were accounted for
76.7% of total private external debt. The private external debt was
still dominated by long-term maturity external debt, which accounted for
77.1% share of 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 May 2021 is manageable, as reflected in the maintained
ratio of Indonesia's external debt to Gross Domestic Product (GDP) at
around 37.6%, lower than 37.9% in the previous month. In addition,
Indonesia's external debt structure remained healthy, which was
indicated by the domination of long-term maturity debt with an 88.5%
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) July 2021 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website.
Jakarta, 16th July 2021
Head of Communication Department
Erwin Haryono
Executive Director
