No. 26/202/DKom
Indonesia's external debt remained manageable in July 2024. The position of external debt in Indonesia in July 2024 was recorded at USD414.3 billion, growing 4.1% annually. The latest developments stemmed from the public sector, which comprises the government and central bank. The external debt position in July 2024 was also influenced by broad-based US dollar depreciation against most other global currencies, including the rupiah.
Government external debt remained under control. The position of government external debt in July 2024 stood at USD194.3 billion, recording an annual growth of 0.6% (yoy) after contracting 0.8% (yoy) in June 2024. The latest developments were attributable to withdrawals of foreign loans and an influx of foreign capital inflows to Government Securities (SBN) in line with maintained investor confidence in the promising Indonesian economic outlook. 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 to sustain economic growth momentum. The Government remains firmly committed to preserving prudent, credible, and accountable external debt management to support expenditures, including human health and social activities (20.9% of total government external debt); public administration, defence and compulsory social security (18.9%); education (16.8%); construction (13.6%); as well as insurance and financial services (9.4%), amongst others. The current state of government external debt is considered manageable, with nearly all, or 99.98% of total government external debt, dominated by long-term maturities.
Private external debt recorded a contraction. The position of private external debt in July 2024 was recorded at USD195.2 billion, tracking an annual contraction of 0.1% (yoy) after posting a low growth in June 2024. The decline was primarily observed in non-financial corporations (NFC), which contracted by 0.04% (yoy). By sector, the main contributors to private external debt in the reporting period were the manufacturing industry; insurance and financial services; electricity and gas supply; as well as mining and quarrying, collectively accounting for 78.9% of total private external debt. Furthermore, 76.3% of total private external debt was dominated by long-term tenors.
The structure of external debt in Indonesia remains sound, supported by prudential management. Such developments were reflected in a 30.2% external debt to gross domestic product (GDP) ratio, with long-term debt dominating 84.9% of total external debt. Seeking to maintain a healthy structure, Bank Indonesia and the Government will continue strengthening inter-agency coordination to monitor external debt developments. 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) September 2024 edition on the Bank Indonesia website. This publication can also be accessed via the Ministry of Finance website.
Jakarta 19th September 2024
Communication Department
Erwin Haryono
Assistant Governor
