Jakarta: Indonesia's external debt position recorded a further decrease in August 2022, Bank Indoneia (BI) has said.
At the end of August 2022, the position of external debt in Indonesia stood at USD397.4 billion, down from USD400.2 billion in the previous month.
The latest developments stemmed from lower debt positions recorded in the public sector (Government and Central Bank) and private sector.
Annually, the external debt position recorded a deeper 6.5% (yoy) contraction in August 2022 after contracting 4.1% (yoy) the month earlier.
"The structure of external debt in Indonesia remains sound, supported by prudential management," BI Communication Department Director Junanto Herdiawan said in a media release on Monday.
External debt was still manageable in August 2022, as reflected by a lower ratio of external debt to gross domestic product (GDP) from 30,7% in July 2022 to 30.4% in August 2022.
In addition, the sound structure of external debt in Indonesia is dominated by long-term debt, accounting for 87.1% of the total external debt.
"Seeking to maintain a healthy structure, Bank Indonesia and the Government continued to strengthen coordination in terms of monitoring external debt, supported by the application of prudential principles, while optimising the role of external debt to support development financing and accelerate the national economic recovery, as well as minimise the risks that could impact economic stability," the BI official stated.
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