Indonesia’s External Debt Remains Controlled - Bank Sentral Republik Indonesia
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May 25, 2019

Indonesia’s external debt at the end of Q4/2018 remains controlled with healthy structure. The position of Indonesia's external debt at the end of Q4/2018 was USD376.8 billion, consisting of government and central bank’s debt of USD186.2 billion, and private including state-owned enterprises’ debt amounting to USD190.6 billion. The external debt position increased USD17.7 billion compared to the previous quarter due to net withdrawals of external debt and the strengthening rupiah against US dolar resulted in bigger rupiah debt held by foreign investors in term of US dolar. Annually, Indonesia's external debt at the end of Q4/2018 grew 6.9% (yoy), higher than the previous quarter’s growth of 4.2% (yoy). The increase in the external debt growth was resulted from growing government and private’s external debt.

The position of the government’s debt at the end of Q4/2018 was USD183.2 billion, increased USD7.1 billion as compared with the position at the end of the previous quarter. The increase was mainly due to a surge in foreign capital inflows to domestic government security (SBN) market in line with conducive domestic economy and attractive yields, as well as the subsided uncertainty of the global financial market. In addition, the increase was also influenced by the issuance of the foreign-exchange SBN for pre-funding the fiscal year 2019. Annually, the government’s external debt at the end of Q4/2018 grew 3.3% (yoy).

The position of the private’s external debt at the end of Q4/2018 increased USD10.6 billion compared to previous quarter. The rise was mainly driven by an increase in foreign ownership of corporate debt securities. The private external debt was mainly incurred by the financial and insurance services sector, manufacturing sector, electricity, gas, and water supply sector, as well as the mining sector. The share of the four sector external debt to the total private external debt reached 73.8%. On a yearly basis, private’s external debt grew 10.9% (yoy) at the end of Q4/2018.

The structure of Indonesia's external debt remains healthy. This is reflected in, among others, the ratio of Indonesia's external debt to Gross Domestic Product (GDP) at the end of Q4/2018 was around 36%. This ratio was still in the range of the average country peers. In addition, the structure of Indonesia's external debt remained dominated by long-term external debt amounting to 86.3% of the total external debt. Bank Indonesia and the Government continue to coordinate to monitor the development of external debt and optimize its role in supporting development financing, without creating risks that can affect economic stability.

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

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