Jakarta: Indonesia's external debt was recorded at USD413.4 billion at the end of August 2020, consisting of public debt (Government and Central Bank) of USD203.0 billion and private debt (including state-owned enterprises) of USD210.4 billion.
Indonesia’s external debt grew 5.7 percent (yoy), higher than 4.2% (yoy) in the previous month, stemming from net drawing external debt, both from the Government and private sector.
In addition, the Rupiah appreciation against the US dollar also contributed to an increase in Rupiah-denominated external debt.
According to Bank Indonesia (BI), the government’s external debt position was recorded at USD200.1 billion at the end of August 2020 or grew by 3.4 percent (yoy), higher compared with 2.3 percent (yoy) in July 2020.
Such development was driven by the partial withdrawing of loans commitment from multilateral agency to support Indonesia‘s covid-19 pandemic handling and the National Economic Recovery program.
The management of government’s external debt is conducted in a prudent and accountable manner to support government spending towards priority sectors, among others, human health & social work activities sector (share 23.7 percent of external debt), construction sector (16.5 percent), education sector (16.5 percent), public administration, defense, & compulsory social security sector (11.8 percent), and financial & insurance sector (11.6 percent).
Meanwhile, at the end of August 2020, the private sector’s external debt grew at 7.9 percent (yoy), up from 6.2 percent (yoy) in July 2020.
The increase was influenced by nonfinancial corporation external debt and financial corporation external debt which grew by 10.3 percent (yoy) and 0.4 percent (yoy), respectively.
Several sectors with the most significant external debt share amounted to 77.5 percent of total private external debt, are the financial & insurance sector; electricity, gas, steam & air conditioning supply sector; mining & drilling sector; and manufacturing sector.
"Indonesia's external debt maintained a healthy structure supported by the prudential principle application in its management," said the BI Communication Department Head Onny Widjanarko said in a press release on Thursday.
Indonesia's external debt to Gross Domestic Product (GDP) ratio in August 2020 is 38.5 percent, relatively stable than 38.2 percent in the previous month.
The debt structure remained dominated by long-term debt, accounted for 89.0 percent of the total external debt.
In close coordination with the government, the central bank continues to monitor external debt by promoting the prudential principle application in its management to maintain a solid external debt structure.
Furthermore, external debt’s role will also be optimized to support development financing and stimulate economic recovery by minimizing the risks that may affect macroeconomic stability.