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Indonesia's external debt declined in July 2022

15 September 2022 15:40

JAKARTA - Indonesia's External Debt (ULN) in July 2022 declined again. Indonesia's external debt position at the end of July 2022 was recorded at US$400.4 billion, down from the position of external debt in the previous month of US$403.6 billion. This development was caused by a decline in external debt from the public sector (Government and Central Bank) and the private sector. On an annual basis, the external debt position in July 2022 contracted by 4.1% (yoy), deeper than the contraction in the previous month of 3.2% ("yoy).

Government external debt in July 2022 continued the downward trend. The government's external debt position in July 2022 was USD$185.6 billion, lower than the previous month's position of US$187.3 billion. On an annual basis, the Government's external debt contracted by 9.9% (yoy), deeper than the contraction in June 2022 of 8.6% (yoy).

Private external debt also continued the downward trend. The position of private external debt in July 2022 was recorded at US$206.3 billion, a decrease from the previous month's position of US$207.7 billion. On an annual basis, private external debt contracted 1.2% (yoy), deeper than the contraction in the previous month of 0.7% (yoy). This development was caused by a contraction in external debt of financial corporations and non-financial corporations by 2.0% (yoy) and 0.9% (yoy), mainly due to net payments of debt securities.

Erwin Haryono, Head of the Communications Department of Bank Indonesia said, “The structure of Indonesia's external debt remains healthy, supported by the application of prudential principles in its management. Indonesia's external debt in July 2022 remained under control, as reflected in the ratio of Indonesia's external debt to Gross Domestic Product (GDP) which was maintained at around 30.7%, a decrease compared to the ratio in the previous month of 31.8%. In addition, the structure of Indonesia's external debt remains healthy, as indicated by Indonesia's external debt which remains dominated by long-term external debt, with a share of 86.8% of total external debt.” (LM)

 

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