Indonesia's Foreign Debt Increases in May 2024 to Reach 407.3 Billion US Dollars

US dollar (Photo: dock unsplash)

JAKARTA - Bank Indonesia (BI) recorded that Indonesia's foreign debt (ULN) in May 2024 increased compared to the same period last year.

Bank Indonesia (BI) reported that the ULN position in May 2024 reached 407.3 billion US dollars, or grew 1.8 percent year on year (yoy), after experiencing a growth contraction of 1.5 percent (yoy) in April 2024.

Assistant Governor of the BI Communication Department Erwin Haryono said that this development came from public sector ULN, both government and central bank, as well as the private sector.

The government's ULN position in May 2024 was recorded at 191.0 billion US dollars, or annually recorded a growth contraction of 0.8 percent (yoy), after contracting by 2.6 percent (yoy) in April 2024.

Meanwhile, the position of private external debt in May 2024 was recorded at 197.6 billion US dollars, or on an annual basis experienced a growth contraction of 0.4 percent (yoy), continuing the contraction in April 2024 of 2.8 percent (yoy).

"The structure of Indonesia's external debt remains healthy, supported by the application of the principle of prudence in its management," said Erwin in his written statement, Monday, July 15.

Erwin said this was reflected in the ratio of Indonesia's external debt to Gross Domestic Product (GDP) which was recorded at 29.8 percent, and was dominated by long-term external debt with a share reaching 85.9 percent of the total external debt.

In order to maintain a healthy external debt structure, Erwin said that Bank Indonesia and the Government continue to strengthen coordination in monitoring external debt developments.

"The role of external debt will also continue to be optimized to support development financing and encourage sustainable national economic growth," he explained.

According to Erwin, these efforts are carried out by minimizing risks that can affect economic stability.