Indonesia's Foreign Debt Drops To 393.7 Billion US Dollars In The Third Quarter Of 2023

Rupiah (Photo: Antara)

JAKARTA - Bank Indonesia recorded Indonesia's Foreign Debt (ULN) in the third quarter of 2023 of USD 393.7 billion, down compared to the second quarter of 2023 of 396.5 billion.

BI Communications Director Erwin Haryono said that the decline in the position of external debt was mainly sourced from the public sector's external debt.

"With these developments, Indonesia's external debt on an annual basis contracted growth by 0.1 percent (yoy), continuing its contraction in the previous quarter by 1.2 percent (yoy)," Erwin said in a written statement, Wednesday, November 15.

Erwin conveyed that Indonesia's external debt structure remains healthy, supported by the application of prudential principles in its management.

Meanwhile, Indonesia's external debt in the third quarter of 2023 remained under control as reflected in the ratio of Indonesia's external debt to Gross Domestic Product (GDP) which fell to 28.9 percent, from 29.3 percent in the previous quarter, and was dominated by long-term external debt with a share of 87.6 percent of total external debt.

Erwin said that in order to keep the external debt structure healthy, Bank Indonesia and the government continue to strengthen coordination in monitoring the development of external debt, supported by the application of prudential principles in its management.

"The role of external debt will also continue to be optimized in supporting development financing and encouraging sustainable national economic growth, by minimizing risks that can affect economic stability," he concluded.