Indonesia’s External Debt Growth Manageable - Bank Sentral Republik Indonesia
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March 19, 2018

Indonesia’s external debt in Q4/2017 remained manageable. Indonesia’s external debt at the end of Q4/2017 amounted USD352.2 billion or grew 10.1% (yoy). This external debt development occurred both in private and public sectors, in line with financing needs for infrastructure development and other productive activities.

Based on original maturity, the Indonesia’s external debt structure in Q4/2017 remained benign. The external debt was dominated by long-term debt, accounted for 86.1% of total external debt and at the end of Q4/2017 grew 8.5% (yoy), while short-term external debt grew 20.7% (yoy).

Based on economic sector, the private sector external debt position at the end of Q4/2017 was mainly concentrated in the financial, manufacturing, electricity, gas, & water supply, and mining sectors. The shares of these four sectors’ external debt to total private sector external debt reached 76.9%, slightly decreased from 77.0% posted in the previous quarter. Compare to the preceding quarter, the year-on-year external debt growth of the financial, manufacturing, and gas & water supply sectors were increased. On the other hand, the annual external debt growth of the mining sector was still in the negative territory.

Bank Indonesia views the development of external debt in Q4/2017 remains manageable. The ratio of Indonesia’s external debt to gross domestic product (GDP) is stable at around 34% at the end of Q4/2017. Moreover, the ratio of short-term debt to total external debt is steady at around 13%. Both ratios are better than the average ratio of peer countries. Bank Indonesia will persevere to monitor the development of external debt to give assurance that the external debt can play an optimal role in supporting development financing without incurring the risks that may affect macroeconomic stability.

The complete data concerning the Indonesia’s external debt can be found in the latest External Debt Statistics of Indonesia in Bank Indonesia website.



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