According to the Central Bank, such development was primarily driven by the accelerated growth of the public sector dan private external debt.
"The Government's external debt decelerated from the previous quarter," said BI Communication Department Head Erwin Haryono in a press release on Monday.
In Q3/2021, the Government's external debt amounted to USD205.5 billion or grew 4.1% (yoy), decelerating from 4.3% (yoy).
Such developments were due to the net payments of foreign loan as the maturing loans were higher than loan withdrawals.
Regarding refinancing risk, the Government's external debt position remains safe since most of it consists of long-term debt, which accounted for 99.9% of the total Government's external debt.
"Central Bank's external debt increased from the previous quarter but did not incur an additional debt interest burden," he stated.
Compared with Q2/2021, the Central Bank's external debt position rose by USD6.3 billion to USD9.1 billion, primarily in the form of Special Drawing Rights (SDR) allocation.
The IMF distributed additional SDR allocation to all member countries, including Indonesia, proportionally on August 2021 to support global economic resilience and stability affected by the Covid-19 pandemics, build confidence, and strengthen long-term global reserves.
The allocation of SDRs from IMF is a particular instrument and not categorized as loans from the IMF since it does not incur additional debt interest burden and obligation that will mature in the future.
"The private sector's external debt increased from the previous quarter," he revealed.
The private sector's external debt grew by 0.2% (yoy) after experiencing a 0.3% (yoy) contraction in the previous quarter. Such development was attributable to nonfinancial corporations' external debt, which grew moderated to 1.0% (yoy) from 1.6% (yoy) in Q2/2021.
Meanwhile, the financial corporation's external debt experienced a 2.7% (yoy) contraction, down from 6.9% (yoy) contraction in the last quarter.
With these developments, the private sector's external debt position registered USD208.5 billion in Q3/2021.
Several sectors with the most significant external debt, namely the financial & insurance sector; electricity, gas, steam, and air conditioning sup ply sector; mining and drilling sector; and manufacturing sector, accounted for 76.4% of total private external debt.
The private's external debt was still dominated by long-term external debt, which accounted for 76.1% share of total private's external debt.
Structure of Indonesia's Foreign Debt
"The structure of Indonesia's external debt remained healthy, supported by the prudential principle application in its management," he explained.Indonesia's external debt in Q3/2021 remained manageable, as reflected in Indonesia's external debt to Gross Domestic Product (GDP) ratio at around 37.0%, lower than 37.5% in the previous quarter.
In addition, Indonesia's external debt structure remained healthy, which was indicated by the domination of long-term debt with an 88.2% share of total external debt.
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