Indonesia’s External Debt Growth in Q1/20 Slowed - Bank Sentral Republik Indonesia
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June 01, 2020

Indonesia's external debt growth slowed. The external debt position was recorded at USD389.3 billion, consisted of public debt (government and central bank) of USD183.8 billion, as well as private debt (including state-owned enterprises) of USD205.5 billion. Indonesia’s external debt decelerated to 0.5% (yoy) from 7.8% (yoy) in the previous quarter, stemming from lower government and private external debt growth.

Government external debt decreased. Outstanding of government external debt at the end of Q1/20 was recorded at USD181.0 billion, contracted by -3.6% (yoy), reversing the previous quarter growth at 9.1% (yoy). The declining government’s external debt position was influenced by capital outflow from the domestic government securities (SBN) market and due SBN payments. The management of government external debt is conducted in a prudent and accountable manner to support government spending towards productive sectors to promote economic growth and improve public welfare. These productive sectors include human health & social work activities sector (23.1% of government external debt), construction sector (16.3%), education sector (16.0%), financial & insurance sector (13.3%), and public administration, defense & compulsory social security sector (11.5%).

The trend of slowing private external debt continues. At the end of Q1/20, private external debt grew at 4.5% (yoy), lower than 6.6% (yoy) in the previous quarter. Such development was influenced by a contraction of the nonfinancial corporation external debt and a slowed expansion of the financial corporation external debt. In Q1/20, external debt of financial corporation contracted by -2.3% (yoy), reverse the previous quarter growth of 3.6% (yoy). Meanwhile, the nonfinancial corporation external debt growth slowed from 7.6% (yoy) in Q4/19 to 6.7% (yoy) in Q1/20. Several sectors with the largest share of external debt, amounted to 77.7% of total private external debt, were 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. The condition was among others, reflected in the indicator of Indonesia's external debt to Gross Domestic Product (GDP) ratio in Q1/20 at 34.5%, down from 36.2% in Q4/19. In addition, the debt structure remained dominated by long-term debt, accounted for 88.4% 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 by minimizing 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) May 2020 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website.

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