Report Mr. Prabowo! Indonesia's Foreign Debt In The Third Quarter Of 2024 Rises Again, Reaches 427.8 Billion US Dollars

Illustration (Photo: Doc Antara)

JAKARTA - Bank Indonesia (BI) recorded Indonesia's Foreign Debt (ULN) in the third quarter of 2024 amounting to 427.8 billion US dollars, or an annual growth of 8.3 percent.

Executive Director of the Communication Department, Ramdan Denny Prakoso, said that the development of the external debt came from the public sector.

The position of the third quarter of 2024 external debt is also influenced by the factor of weakening the US dollar currency against the majority of global currencies, including the rupiah.

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, Friday, November 15.

Ramdan said that the position of private external debt in the third quarter of 2024 was recorded at 196.0 billion US dollars or experienced a growth contraction of 0.6 percent (yoy), after a low growth of 0.02 percent (yoy) in the second quarter of 2024.

According to Ramdan, this development was mainly driven by external financial companies which recorded a growth contraction of 3.2 percent (yoy).

Ramdan 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) which is maintained at 31.1 percent, and dominated by long-term external debt with a share of 84.2 percent of total external debt.

In order to keep the external debt structure healthy, said Ramdan, Bank Indonesia and the government continue to strengthen coordination in monitoring the development of external debt.

"The role of external debt will also continue to be optimized to support development financing and encourage sustainable national economic growth. These efforts are carried out by minimizing risks that can affect economic stability," concluded Ramdan.