Break The Record! Indonesia's Foreign Debt Reaches The Highest Level Of IDR 6,145 Trillion, Bank Indonesia: Still Under Control

Illustration. (Photo: By courtesy)

JAKARTA - Bank Indonesia announced Indonesia's foreign debt in February 2021 amounting to $422.6 billion or the equivalent of IDR 6,145.7 trillion (exchange rate: IDR 14,542).

The book increased by 4.0 percent compared to the same period in 2020, or higher than January 2021 growth which was recorded at 2.7 percent.

Head of the Communication Department Bank Indonesia Erwin Haryono said the increase in external debt growth was driven by government external debt and private external debt.

"Government external debt remains under control and is managed in a measured and careful manner", he said in a press statement, Friday, April 16.

Erwin added that on an annual basis the government's external debt grew 4.6 percent, higher than the growth in January 2021 of 2.8 percent.

"The increase is in line with efforts to deal with the impact of the COVID-19 pandemic since 2020 and the acceleration of vaccination and social protection programs in the first quarter of 2021", he said.

In detail, the government's external debt position in February 2021 reached $209.2 billion, lower than the previous month's position of $210.8 billion.

"The position of government external debt is relatively safe and controllable because almost all of it is long-term external debt with a share of 99.9 percent of total government external debt", he added.

Meanwhile, private external debt remains dominated by long-term loans. The growth of private external debt was recorded at 3.4 percent year-on-year (YoY), an increase compared to the growth in the previous month of 2.5 percent YoY.

With these developments, the position of private external debt in February 2021 was $210.5 billion, dominated by long-term external debt with a share of 78.0 percent of total private external debt.

"The structure of Indonesia's external debt remains healthy, supported by the application of the principle of prudence in its management", he said.

Meanwhile, in terms of the ratio of Indonesia's external debt to Gross Domestic Product, which was maintained at around 39.7 percent, relatively stable compared to the ratio in the previous month of 39.6 percent.

"The role of external debt will also continue to be optimized in supporting development financing and encouraging national economic recovery, by minimizing risks that can affect economic stability", said Erwin.

For information, the document received by VOI states that Indonesia's foreign debt position for the February 2021 period of $422.6 billion is the highest in the past 10 years.

It was stated that the January 2021 external debt amounted to $420.7 billion. Then, in 2019 it was $403.5 billion, in 2018 $375.4 billion, in 2017 $352.4 billion, in 2016 $320 billion.

Then 2015 amounted to 310.7 billion US dollars, 2014 amounted to $293.3 billion, 2013 amounted to $266.1 billion, 2012 amounted to $252.3 billion, and 2011 amounted to $225.3 billion.