BI: Indonesia's Foreign Debt Reaches IDR 6,001 Trillion, Government And Private Differ Slightly

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) reported that Indonesia's external debt (ULN) in the third quarter of 2021 was recorded at 423.1 billion US dollars or equivalent to Rp. 6,001 trillion (exchange rate of Rp. 14,183). This figure grew by 3.7 percent compared to the same period the previous year (year-on-year/yoy), or higher than the growth in the previous quarter of 2.0 percent yoy.

"This development is due to the increase in external debt growth in the public and private sectors," said Head of the BI Communications Department Erwin Haryono as quoted on the official website, Monday, November 15.

In his explanation, Erwin said that the government's external debt grew lower than the previous quarter.

It was also stated that the government's external debt position in the third quarter of 2021 was US$ 205.5 billion or grew 4.1 percent yoy, lower than the growth in the second quarter of 2021 of 4.3 percent yoy.

"This development was caused by the net repayment of loans in line with the higher maturity of loans compared to loan withdrawals," he said.

According to Erwin, the government's external debt that is always managed carefully, credible, and accountable is prioritized to support priority spending, including the continuation of efforts to accelerate the National Economic Recovery (PEN) program.

"In terms of refinancing risk, the government's external debt position is safe because almost all external debt have long-term tenors with a share of 99.9 percent of the total," he said.

Meanwhile, private external debt increased by 0.2 percent yoy to US$208.5 billion. By sector, the largest private external debt comes from the financial and insurance services sector, the electricity, gas, steam/hot water and cold air supply sector, the mining and quarrying sector, and the manufacturing industry sector, with a share of 76.4 percent of total private external debt. .

"The external debt is still dominated by long-term tenors with a portion reaching 76.1 percent," he said.

The monetary authority ensures that the structure of Indonesia's external debt remains healthy, supported by the application of prudential principles in its management.

"Indonesia's external debt in the third quarter of 2021 remained under control, as reflected in the ratio of Indonesia's external debt to Gross Domestic Product (GDP) which was maintained at around 37.0 percent, down from the ratio in the previous quarter of 37.5 percent," he said.

“In addition, the structure of Indonesia's external debt remains healthy, which is dominated by long tenors, with a share of 88.2 percent of the total. Going forward, the government of Bank Indonesia will continue to strengthen coordination in monitoring the development of external debt, supported by the application of prudential principles in its management," concluded Erwin.