Indonesia’s External Debt Growth Slowed - Bank Sentral Republik Indonesia
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February 20, 2020

Indonesia's external debt experienced slower growth at the end of November 2019. The external debt at the end of November 2019 was recorded at USD401.4 billion, consisted of public debt (government and central bank) of USD201.4 billion, as well as private debt (including state-owned enterprises) of USD200.1 billion. Indonesia’s external debt decelerated to 8.3% (yoy) from 12.0% (yoy) in the previous period. Such conditions stemmed from government and private external debt, for which the growth moderated.

Government external debt growth slowed from the previous period. Government external debt in November 2019 was recorded at USD198.6 billion, grew lower at 10.1% (yoy) compared with 13.6% (yoy) in the last period. The level went down from the last period, mainly due to the repayment of maturing bilateral and multilateral loans. The management of government external debt is prioritized to finance economy, whereas the biggest portion is directed towards productive sectors that could promoting economic growth and improving public welfare, among others, human health & social work activities sector (19.0% of government external debt), construction sector (16.5%), education sector (16.1%), public administration, defense & compulsory social security sector (15.4%), and financial & insurance sector (13.4%).

Private external debt growth decelerated from the previous month. At the end of November 2019, private external debt growth was recorded at 6.9% (yoy), slowed down from 10.7% (yoy) in the previous period. Such conditions influenced by repayment on maturing domestic debt securities, despite increasing debt from securities issued by nonfinancial corporations and loan disbursement by banks. By sector, the debt was dominated by the financial & insurance sector, electricity, gas, & water supply sector, manufacturing sector, and mining & drilling sector with share amounted to 76.9% to total private external debt.

Indonesia's external debt maintained a healthy structure supported by the prudential principle application in its management. The condition was among others, reflected in the indicator of Indonesia's external debt to Gross Domestic Product (GDP) ratio, which was relatively stable at 35.9% in November 2019. In addition, the debt structure remained dominated by long-term debt, accounted for 88.5% of the total external debt. Bank Indonesia, in close coordination with the Government, 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 in supporting development financing without incurring the risks which 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) January 2020 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website.

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