Indonesia’s External Debt Managed - Bank Sentral Republik Indonesia
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September 29, 2020

Indonesia’s total external debt was manageable with solid structure as of end Q1/2019. Indonesia’s external debt at the end of Q1/2019 stood at USD387,6 billion, consisting of government and central bank debt of USD190.5 billion and private debt (including state-owned enterprises) amounting to USD197,1 billion. The Indonesia’s external debt grew 7.9% (yoy), higher than previous quarter growth due to net withdrawals external debt and the strengthening rupiah against US dollar resulted in a larger amount of rupiah debt in terms of US dollar. The rising external debt growth stemmed primarily from private external debt, amid a relatively stable government external debt growth.

Government external debt growth was relatively stable in Q1/2019. As of end Q1/2019, government external debt amounted to USD187.7, recorded a relatively stable growth of 3.6% (yoy) compared to 3.3% (yoy) in the previous quarter. Such developments were attributed by foreign capital inflows to the domestic Government Securities (SBN) market while the outstanding of SBN denominated in foreign currency declined because of repayment on the global bonds’ due in March 2019. It was reflecting strong investor confidence in Indonesia’s economic outlook. Government external debt management is prioritized to finance development, dominated in several sectors, among others, human health & social sector (18.8% of government external debt), construction sector (16.3%), education sector (15.7%), public administration & defense sector (15.1%), and financial & insurance sector (14.4%).

Private external debt increased in Q1/2019. The private external debt position as of end Q1/2019 grew 12.8% (yoy), up from 11.3% (yoy) in the previous quarter. Majority of private external debt comprised of the financial & insurance sector, manufacturing sector, electricity, gas, & water supply sector, and mining sector. External debt’s share in these four sectors to total private external debt reached 75.2%.

Indonesia’s external debt maintained a solid structure.This condition was reflected, among others, from Indonesia’s external debt ratio to Gross Domestic Product (GDP) relatively stable at 36.9% as of end Q1/2019. Furthermore, the structure of Indonesia's external debt remained largely dominated by long-term debt, reached 86.1% of the total external debt. Thus, despite the rise of Indonesia’s external debt, it was manageable with solid structure. Bank Indonesia in close coordination with the Government continues to monitor external debt and to optimize the external debt’s role in supporting development financing without incurring the risks that may affect macroeconomic stability.

The complete data on the latest Indonesian external debt and its metadata can be obtained in the publication of the Indonesia’s External Debt Statistics (SULNI) May 2019 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website.



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