BI Icon

​Communication Department​

7/16/2021 12:00 AM
Hits: 189

Indonesia’s External Debt Decreased in May 2021

Highlight News

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

Lampiran
Kontak

​Contact Center BICARA : (62 21) 131 e-mail : bicara@bi.go.id
Working hours: Monday to Friday, 08.00-16.00 West Indonesia Time

Halaman ini terakhir diperbarui 7/19/2021 11:26 AM
Was this page useful?
Thank You! Would you like to give more detail?

Other Articles