LN RI Debt As Of November 2023 Reaches IDR 6,236 Trillion, BI Calls Still Under Control

JAKARTA - Bank Indonesia (BI) noted that Indonesia's foreign debt (ULN) position in November 2023 was 400.9 billion US dollars or Rp. 6,236 trillion (exchange rate of Rp. 15,555 per US dollar), an increase of 1.82 percent compared to the position of the October 2023 external debt of 393.7 billion US dollars.

Executive Director, Head of the BI Communication Department Erwin Haryono revealed that Indonesia's external debt position rose 2.0 percent from November 2022.

The increase was also higher than the previous month's growth of 0.7 percent yoy.

Erwin conveyed that the development of the external debt was mainly caused by external debt transactions in the public sector.

In addition, the position of external debt in November 2023 was also influenced by the factor of weakening the US dollar currency against the majority of global currencies including the rupiah, which resulted in an increase in the statistics of Indonesia's external debt in other US dollars.

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

"Indonesia's external debt in November 2023 will be maintained, as reflected in the ratio of Indonesia's external debt to Gross Domestic Product (GDP) of 29.3 percent, and dominated by long-term external debt with a share of 87.1 percent of total external debt," he explained in his statement, Monday, January 15.

Erwin said, in order to keep the external debt structure healthy, Bank Indonesia and the Government continue to strengthen coordination.

According to Erwin, this is done by monitoring the development of external debt, and applying the precautionary principle in its management.

In addition, 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.