Indonesia’s External Debt Grows Stably - Bank Sentral Republik Indonesia
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November 15, 2018

Indonesia’s external debt grew stably at the end of August 2018. Indonesia’s external debt at the end of August 2018 amounted to USD360.7 billion, consisting of government and central bank external debt of USD181.3 billion, as well as private sector, including state-owned enterprises, external debt of USD179.4 billion. Indonesia’s external debt grew at 5.14% (yoy), relatively stable compare to previous month’s growth of 5.08% (yoy). Indonesia's external debt growth in August 2018 was influenced by the increasing growth in private external debt amid slowing growth in government and central bank external debt.

Government’s external debt grew at slower pace in August 2018. The government external debt at the end of August 2018 amounted to USD178.1 billion or grew 4.07% (yoy), slightly slower compared to the previous month's growth of 4.12% (yoy). The government's external debt position recorded a monthly increase compared to the previous month's position due to net withdrawals of loans, particularly multilateral loans, as well as net purchases of domestic government securities (SBN) by foreign investors. Loan withdrawals, among others, came from the Asian Development Bank (ADB) to support programs carried out by the Coordinating Ministry for Economic Affairs and the Ministry of Finance. On the other hand, in the reporting month the Government repaid a series of SBN denominated in Japanese Yen which was due on August 13, 2018. The Government always ensures that all maturing external debt obligations can be paid in a timely manner and guarantees that no default will occur.

Private external debt growth increased in August 2018. The position of private external debt at the end of August 2018 was recorded at USD179.4 billion or grew 6.70% (yoy), up from the previous period (6.49% yoy). The private external debt is mainly incurred by the financial and insurance services sector, the manufacturing industry sector, the electricity, gas, steam/hot water (LGA) procurement sector, and the mining and quarrying sector. The share of those four sectors’ external debt to total private external debt reached 72.5%, relatively stable compared to the share in the previous period.

The development of Indonesian external debt remains manageable with a healthy structure. This is reflected in, among others, the ratio of Indonesia's external debt to Gross Domestic Product (GDP) at the end of August 2018 which is stable in the range of 34%. The ratio is still better than the peers' average. Based on original maturity, Indonesia's external debt structure remained dominated by long-term external debt with a share of 86.8% of total external debt. Bank Indonesia and the Government continue to coordinate to monitor the development of external debt from time to time to optimize the role of external debt 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) October 2018 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website.

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