​No.26/28/DKom 

The position of external debt in Indonesia remained manageable in the fourth quarter of 2023. At the end of the fourth quarter of 2023, the position of external debt in Indonesia was recorded at USD407.1 billion, with growth accelerating to 2.7% (yoy) from 0.02% (yoy) in the previous quarter.  The latest developments were primarily attributable to external debt transactions in the public sector.  In addition, the fourth-quarter position of external debt was also influenced by broad-based US dollar depreciation against most global currencies, including the Rupiah.

Government's external debt remained under control and managed in a well-calibrated and accountable manner.  The position of government's external debt stood at USD196.6 billion at the end of the reporting period, as growth accelerated to 5.4% (yoy) from 3.3% (yoy) in the third quarter of 2023.  This was primarily influenced by increasing withdrawals of foreign loans, specifically multilateral loans, to finance several programs and projects.  Higher government external debt also stemmed from increasing portfolio investment placements in the domestic and international government securities (SBN) markets in response to positive market sentiment stoked by early indications of easing global financial market uncertainty.  The Government remains firmly committed to preserving credibility in servicing principal and interest payments promptly, as well as maintaining prudential, efficient and accountable external debt management. As a component of State Revenue and Expenditure Budget (APBN) financing instruments, external debt in the fourth quarter of 2023 remained focused on supporting productive sectors and priority expenditures, particularly ongoing efforts to maintain solid economic growth momentum in Indonesia.  External debt support in the reporting period was oriented towards human health and social activities (23.7% of total government external debt); public administration, defence and compulsory social security (18.9%); education (16.6%); construction (14.1%); as well as insurance and financial services (9.7%), among others.  The current position of government external debt is considered safe and manageable, with nearly all, or 99.8% of total government external debt, dominated by long-term maturities.

Private external debt remained manageable and continued tracking a contractionary trend. The position of private external debt was recorded at USD197.0 billion in the fourth quarter of 2023, experiencing a shallower 1.9% (yoy) contraction after declining 3.5% (yoy) in the previous quarter.  The decrease stemmed from external debt at financial corporations and non-financial corporations, which recorded 2.4% (yoy) and 1.8% (yoy) contractions 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, accounting collectively for 78.7% of total private external debt. Furthermore, 74.9% 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 development was reflected by a ratio of external debt to gross domestic product (GDP) of 29.7%, dominated by long-term debt that accounted for 86.6% of total external debt. Seeking to maintain a healthy structure, Bank Indonesia and the Government will continue strengthening inter-agencies 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) February 2024​ edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website.

Jakarta, 15 February 2024

Communication Department

Erwin Haryono

Assistant​ Governor