Jakarta: Indonesia’s external debt decelerated to 0.5 percent year-on-year (yoy) from 7.8 percent (yoy) in the previous quarter, stemming from lower government and private external debt growth.
The external debt position was recorded at USD389.3 billion, consisted of public debt (government and central bank) of USD183.8 billion, as well as private debt (including state-owned enterprises) of USD205.5 billion.
Outstanding of government external debt at the end of the first quarter of 2020 was recorded at USD181.0 billion, contracted by -3.6 percent (yoy), reversing the previous quarter growth at 9.1 percent (yoy).
"The declining government’s external debt position was influenced by capital outflow from the domestic government securities (SBN) market and due SBN payments," Bank Indonesia (BI) said in a press release on Friday, May 15, 2020.
Last quarter, private external debt grew at 4.5 percent (yoy), lower than 6.6 percent (yoy) in the previous quarter.
Such development was influenced by a contraction of the nonfinancial corporation external debt and a slowed expansion of the financial corporation external debt.
According to the central bank, external debt of financial corporation contracted by -2.3 percent (yoy), reverse the previous quarter growth of 3.6 percent (yoy).
Meanwhile, the nonfinancial corporation external debt growth slowed from 7.6 percent (yoy) in the fourt quarter of 2019 to 6.7% (yoy) in the first quarter of 2020.
"Indonesia's external debt maintained a healthy structure supported by the prudential principle application in its management," BI stated.
The condition was among others, reflected in the indicator of Indonesia's external debt to Gross Domestic Product (GDP) ratio last quarter at 34.5 percent, down from 36.2 percent in the previous quarter.
In addition, the debt structure remained dominated by long-term debt, accounted for 88.4 percent of the total external debt.