Jakarta: Indonesia’s external debt at the end of January 2020 decelerated to 7.5 percent (yoy) from 7.7 percent (yoy) in the previous month stemming from private debt growth.
Indonesia's external debt position at the end of January 2020 was recorded at USD410.8 billion, consisting of public debt (government and central bank) of USD207.8 billion, as well as private debt (including state-owned enterprises) of USD203.0 billion.
At the end of January 2020, growth in private external debt eased to 5.8 percent (yoy) from 6.5 percent (yoy) in the previous month from the effect of slowed expansion in financial corporation external debt.
By sector, the debt was dominated by the financial & insurance sector, electricity, gas, & water supply sector, mining & drilling sector, and manufacturing sector, with share amounted to 77.3 percent of total private external debt.
In January 2020, outstanding of government external debt was recorded at USD204.9 billion or grew by 9.5 percent (yoy).
Such developments was dominated from foreign capital inflow to government securities (SBN) market, including issuance of dual currency global bonds, namely in euro and US dollar.
The management of government external debt is prioritized to finance development towards productive sectors that could promoting economic growth and improving public welfare, among others, human health & social work activities sector (23.5 percent of government external debt), education sector (16.3 percent), construction sector (16.2 percent), financial & insurance sector (12.9 percent), and public administration, defense & compulsory social security sector (11.6 percent).
"Indonesia's external debt maintained a healthy structure supported by the prudential principle application in its management," Bank Indonesia (BI) said in a press release issued on Monday, March 16, 2020.
The condition was among others, reflected in the indicator of Indonesia's external debt to Gross Domestic Product (GDP) ratio in January 2020 at 36.0 percent down compared to the last period.
In addition, the debt structure remained dominated by long-term debt, accounted for 89.3 percentof the total external debt.
"Bank Indonesia, in close coordination with the Government, continues to monitor external debt by promote the prudential principle application in its management to maintain a solid external debt structure," the central bank stated.
"Furthermore, external debt's role will also be optimized in supporting development financing without incurring the risks which may affect macroeconomic stability," it added.