​No. 26/75/DKom 

Indonesia's external debt remained manageable in February 2024.  The position of external debt in Indonesia in February 2024 was recorded at USD407.3 billion, with growth accelerating to 1.4% (yoy) from 0.2% (yoy) in the previous month.  The rise primarily stemmed from the public sector, which comprises the government and central bank.  The latest developments were also influenced by US dollar depreciation against several global currencies, including the rupiah.

Government external debt also remained under control due to measured, efficient and accountable management.  The position of government external debt in February 2024 stood at USD194.8 billion as growth rising to 1.3% (yoy) from 0.1% (yoy) in the previous period.  The latest developments were primarily attributable to government withdrawals of foreign loans, specifically multilateral loans, to help finance various government programs and projects. As a component of State Revenue and Expenditure Budget (APBN) financing instruments and to maintain economic growth momentum in Indonesia, external debt is consistently geared towards supporting government efforts to finance productive sectors and priority expenditures.  Furthermore, government external debt is managed prudently, credibly and accountably to support expenditures, including human health and social activities (21.1% of total government external debt); public administration, defence and compulsory social security (18.1%); education (16.9%); construction (13.7%); as well as insurance and financial services (9.7%), among others.  The current position of government external debt is considered safe and manageable, with long-term maturities accounting for nearly all (99.98%) of total government external debt.

Private external debt continued tracking a contractionary trend.  The position of private external debt was relatively stable at USD197.4 billion in February 2024.  Annually, private external debt contracted by a more modest 1.3% (yoy) in the reporting period, after retreating 2.3% (yoy) in January 2024. The decline was attributable to external debt contractions of 1.3% (yoy) at financial corporations and non-financial corporations, respectively.  By sector, the main contributors to private external debt in the reporting period were the manufacturing industry; insurance and financial services; electricity, gas, steam and air conditioning supply; as well as mining and quarrying, accounting collectively for 78.3% of total private external debt. Furthermore, 76.3% of total private external debt was dominated by long-term tenors.

The external debt structure in Indonesia remains sound, supported by prudential management. Such developments were reflected in a 29.5% external debt to gross domestic product (GDP) ratio, with long-term debt dominating 86.9% of total external debt. Seeking to maintain a healthy structure, Bank Indonesia and the Government will continue strengthening inter-agency coordination to monitor external debt developments and implementing prudential external debt management principles. The function of external debt will also be optimised to support development financing and nurture sustainable economic growth nationally by minimising the risks that could disrupt economic stability.

The latest external debt data and metadata are presented in the publication of Indonesia's External Debt Statistics (SULNI) April 2024 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website.

Jakarta 19th April 2024​

Communication Department

Erwin Haryono

Governor Assistant