Indonesia’s External Debt Growth in July 2020 Slowed - Bank Sentral Republik Indonesia
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September 29, 2020

Indonesia’s external debt experienced lower growth. The external debt was recorded at USD409.7 billion at July 2020, consisting of public debt (Government and Central Bank) of USD201.8 billion and private debt (including state-owned enterprises) of USD207.9 billion. Indonesia’s external debt decelerated to 4.1% (yoy) from 5.1% (yoy) in the previous month, stemming from lower private external debt growth amid stable government external debt growth.

The government’s external debt growth remained stable in July 2020. The position of government’s external debt at the end of July 2020 was registered at USD199.0 billion or grew by 2.3% (yoy), relatively stable compared with 2.1% (yoy) in the previous month. The government’s external debt growth was influenced by partial withdrawing of multilateral agency commitment and Samurai bonds issuance, as part of funding needs, including handling of the COVID-19 outbreak and the National Economic Recovery program. The management of government’s external debt is conducted in a prudent and accountable manner to support government spending towards priority sectors, among others, human health & social work activities sector (share 23.6% of external debt), construction sector (16.5%), education sector (16.4%), financial & insurance sector (11.9%), and public administration, defense, & compulsory social security sector (11.8%).

Private’s external debt growth in July 2020 decelerated. At the end of July 2020, private sector’s external debt grew at 6.1% (yoy), lower than 8.3% (yoy) in the previous month. Such development was influenced by the continued slowed growth of nonfinancial corporation external debt coupled with the contraction of financial corporation external debt. Nonfinancial corporation external debt decelerated from 11.5% (yoy) in June 2020 to 8.7% (yoy). Meanwhile, the financial corporation external debt recorded a deeper 2.2% (yoy) contraction compared with 1.9% (yoy) contraction in the previous month. Several sectors with the most significant external debt share amounted to 77.2% of total private external debt, including the financial & insurance sector; electricity, gas, steam & air conditioning supply sector; mining & drilling sector; and manufacturing sector.

Indonesia's external debt maintained a healthy structure supported by the prudential principle application in its management. Indonesia's external debt to Gross Domestic Product (GDP) ratio in July 2020 is 38.2%, increased from 37.4% in June 2020. The debt structure remained dominated by long-term debt, accounted for 89.1% of the 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. Furthermore, external debt’s role will also be optimized to support development financing 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) September 2020 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website.

Head of Communication Department
Onny Widjanarko
Executive Director
Information on Bank Indonesia
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