JAKARTA – Indonesia’s foreign debts reportedly clocked up to USD 396.8 billion in December 2022, shrinking from USD 413.97 billion observed in the same period in 2021.

In the press release quoted Wednesday (15/2), Erwin Haryono, Executive Director of Communication Department of Bank Indonesia (BI), claimed that the foreign debts were contracted 4.1% year-on-year (yoy). “The contraction was a result from decreases in government’s debts and private sectors’ debts,” he revealed.

According to Haryono, Indonesia’s foreign debts in Q4 2022 were affected by USD that weakened compared to other global currencies. The foreign debts are still deemed under control, as reflected from the foreign debt to gross domestic product (GDP) ratio that still arrived at 30.1%, albeit slightly declining from 30.3% in Q3 2022. Long-term debts still dominated the total foreign debts, making up 87.3% of the total composition.

“Bank Indonesia and the government will still reinforce coordination to monitor the progress of foreign debts with prudence in its management,” Haryono concluded. (LK/ZH)