Rupiah Laundering Is The Cause Of Indonesia's Foreign Debt To Increase To 407.3 Billion US Dollars

Illustration (Photo: Doc. ANTARA)

JAKARTA - Bank Indonesia (BI) noted that Indonesia's Foreign Debt (ULN) increase in February 2024 was recorded at US$407.3 billion or grew 1.4 percent year on year (yoy) when compared to the previous month's position which grew 0.2 percent (yoy).

BI Assistant Governor Erwin Haryono explained that the increase was mainly sourced from the public sector, both the government and the central bank.

"The development of the external debt position is also influenced by the factor of weakening the US dollar currency against several global currencies, including the rupiah," Erwin said in a written statement, Friday, April 19.

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

This is reflected in the ratio of Indonesia's external debt to Gross Domestic Product (GDP) of 29.5 percent, and is dominated by long-term external debt with a share of 86.9 percent of total external debt.

According to Erwin, 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.