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BI: Indonesia's external debt is still under control

15 March 2019 04:37 PM  Company: []
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JAKARTA - Bank Indonesia (BI) recorded that Indonesia's external debt as of the end of January 2018 remained under control with a healthy structure. The position of Indonesia's external debt as of the end of January 2019 was recorded at US$ 383.3 billion, consisting of government and central bank debt of US$ 190.2 billion and private debt, including state-owned enterprises, amounting to US$ 193.1 billion.

"On an annual basis, Indonesia's external debt in January 2019 grew by 7.2% (yoy), relatively stable compared to the growth of the previous period. The relatively stable external debt growth is in line with the increase in government external debt growth amid a slowdown in the growth of private external debt," BI wrote in a press release received by IDNFinancials.com on Friday (15/3).

Government external debt as of January 2019 was recorded at US$ 187.2 billion, up 3.7% year on year (yoy) and increasing from the previous month's growth of 3.1% yoy. The increase provided an opportunity for the government to finance spending and investment, with priority sectors such as health, education, and defence.

Meanwhile, private external debt as of January 2019 was recorded at US$ 1.5 billion, up 10.8% yoy and slowing compared to growth in the previous month of 11.5% yoy. The slowdown was mainly due to the slowing down of external debt in the manufacturing sector and the financial and insurance services sectors.

BI assesses that Indonesia's external debt structure remains healthy as reflected in a stable ratio of external debt to gross domestic product (GDP) of around 36% and external debt structure which is still dominated by long-term external debt. "Bank Indonesia and the Government continue to coordinate to monitor the development of external debt and optimise its role in supporting development financing, by minimizing risks that can affect economic stability," BI said. (MS)