Government Foreign Debt Increases To 204.1 Billion US Dollars As Of September 2024

JAKARTA - Bank Indonesia said the government's Foreign Debt (ULN) until September 2024 was USD 204.1 billion compared to USD 200.4 billion in August 2024.

Executive Director of the Communications Department, Ramdan Denny Prakoso, said that the government's external debt position in the third quarter of 204.1 billion US dollars, or grew by 8.4 percent yoy, after recording a growth contraction of 0.8 percent (yoy) in the second quarter of 2024.

"The development of the external debt is influenced by the withdrawal of foreign loans and the increase in the flow of foreign capital in domestic Government Securities (SBN), along with maintained investor confidence in the prospects for the Indonesian economy," he explained in his statement, Monday, November 18.

Ramdan said that the Government continues to be committed to maintaining credibility by fulfilling the obligations of principal payments and interest on time, as well as managing external debt in a prudent and accountable manner to get the most efficient and optimal financing.

According to Ramdan, as one of the instruments for financing the State Revenue and Expenditure Budget (APBN), the use of external debt continues to be directed to support the financing of priority sectors while still paying attention to the sustainability aspect of external debt management.

Meanwhile, based on the economic sector, government external debt is used, among others, to support the Health Services and Social Activities Sector (21.0 percent of the total government external debt); Government Administration, Defense and Social Security (18.9 percent); Education Services (16.8 percent); Construction (13.6 percent); and Financial and Insurance Services (9.1 percent).

Ramdan said the government's external debt position remained under control considering that almost all external debt had a long-term tenor with a share of 99.9 percent of the total government's external debt.