No. 26/222/DKom
Indonesia's external debt remained manageable in August 2024. The position of external debt in Indonesia in August 2024 was recorded at USD425.1 billion, growing 7.3% annually. The latest developments stemmed from both the public and private sectors. The external debt position in August 2024 was also influenced by broad-based US dollar depreciation against most other global currencies, including the rupiah.
Government external debt remained manageable. The position of government external debt in August 2024 stood at USD200.4 billion, representing a 4.6% (yoy) increase, up from 0.6% (yoy) growth in July 2024. The latest developments were attributable to an influx of foreign capital inflows to domestic 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 (9.3%), amongst others. The current state of government external debt is considered manageable, with nearly all, or 99.9% of total government external debt, dominated by long-term maturities.
Private external debt also remained under control. The position of private external debt in August 2024 was recorded at USD197.8 billion, tracking annual growth of 1.3% (yoy), slightly higher than 0.5% (yoy) in July 2024. The latest developments were primarily observed in non-financial corporations (NFC), which posted a 1.6% (yoy) growth. 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 79.3% of total private external debt. Furthermore, 75.5% 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 31.0% external debt to gross domestic product (GDP) ratio, with long-term debt dominating 84.3% 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) October 2024 edition on the Bank Indonesia website. This publication can also be accessed via the Ministry of Finance website.
Jakarta 14th October 2024
Communication Department
Ramdan Denny Prakoso
Executive Director
