No. 26/102/DKom
Indonesia's external debt declined in the first quarter of 2024. The position of external debt in Indonesia in the first quarter of 2024 was recorded at USD403.9 billion, down from the fourth quarter of 2023 position, which stood at USD408.5 billion. The lower external debt position stemmed from both the public and private sectors. Annually, Indonesia's external debt booked a 0.02% (yoy) contraction in the reporting period, reversing the 3.0% (yoy) growth the quarter earlier.
The government external debt experienced a decline. The position of government external debt in the first quarter of 2024 stood at USD192.2 billion, retreating from USD196.6 billion in the previous quarter. Annually, government external debt experienced a 0.9% (yoy) contraction in the reporting period, following a 5.4% (yoy) growth in the last period. This decline was influenced, amongst other factors, by a rebalancing of non-resident investor funds in the domestic government securities (SBN) market in response to increasing global financial market uncertainty. Meanwhile, the Government remains firmly committed to preserving credibility in servicing principal and interest payments promptly, as well as managing external debt with flexibility and strategic opportunism concerning timing, tenor, currency, and instruments to secure the most efficient and optimal financing. External debt, as a component of State Revenue and Expenditure Budget (APBN) financing instruments, is consistently geared towards supporting government efforts to finance productive sectors and priority expenditures. External debt support in the reporting period was oriented towards human health and social activities (21.1% of total government external debt); public administration, defence and compulsory social security (18.3%); education (16.9%); construction (13.7%); as well as insurance and financial services (9.6%), among others. The current state of government external debt is considered safe and manageable, with nearly all, or 99.98% of total government external debt, dominated by long-term maturities.
Private external debt also went down. The position of private external debt was recorded at USD197.0 billion in the first quarter of 2024, decreasing from USD198.4 billion in the last quarter. Annually, the position of private external debt experienced a deeper contraction of 1.8% (yoy) in the reporting period, compared with a 1.2% (yoy) contraction in the fourth quarter of 2023. The decline was observed in both non-financial corporations and financial corporations, which contracted by 1.8% (yoy) and 1.6% (yoy), respectively. By sector, the main contributors to private external debt in the reporting period were the manufacturing industry; insurance and financial services; electricity, gas, steam and air conditioning supply; as well as mining and quarrying, collectively accounting for 78.3% of total private external debt. Furthermore, 76.1% of total private external debt was dominated by long-term tenors.
The structure of Indonesia's external debt remains sound, supported by prudential management. Such developments were reflected in a lower ratio of external debt to gross domestic product (GDP) from 29.8% to 29.3%, with long-term debt dominating 86.8% of total external debt. To maintain a healthy structure, Bank Indonesia and the Government will continue strengthening inter-agency coordination to monitor external debt developments and implementing prudential external debt management principles. The function of external debt will also be optimised to support development financing and nurture sustainable economic growth nationally by minimising the risks that could disrupt economic stability.
The latest external debt data and metadata are presented in the publication of Indonesia's External Debt Statistics (SULNI) May 2024 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website.
Jakarta 15th4
Communication Department
Erwin Haryono
Assistant Governor
