JAKARTA - Bank Indonesia (BI) recorded that Indonesia's external debt in July 2019 was in a sound structure. Indonesia's external debt for the month was US$ 395.3 billion, consisting of government and central bank debt of US$ 197.5 billion and private debt (including SOEs) of US$ 197.8 billion.
Government external debt in July grew by 9.7% year on year (yoy), higher than the previous month's growth of 9.1% yoy. "The increase was driven by foreign capital inflows on the domestic government securities market which remained high amid global dynamics that were less conducive," BI wrote in an official statement, Monday (16/9).
"This reflects investor confidence in the domestic economy, supported by attractive portfolio investment returns on domestic financial assets."
Meanwhile, private external debt recorded a growth of 11.5% yoy, higher than the June growth of 11.1%. The increase was mainly contributed by the issuance of global bonds from non-financial institution corporations.
Furthermore, BI explained, Indonesia's external debt structure remained healthy with support from the application of the principle of prudential management. This condition was reflected in, among others, the ratio of Indonesia's external debt to Gross Domestic Product (GDP) in July 2019 which was recorded at 36.2%, better than the ratio in the previous month. (MS)