JAKARTA - Bank Indonesia (BI) noted that the government's Foreign Debt (ULN) position in November 2024 was recorded at US$203.0 billion, or grew by 5.4 percent (yoy), lower than the growth in October 2024 of 8.6 percent (yoy).
Executive Director of the BI Communication Department, Ramdan Denny Prakoso, said that government external debt grew lower, this development was influenced by foreign capital inflows in international Government Securities (SBN) and withdrawals of foreign loans used to support the financing of several government programs and projects.
"As one of the state budget financing instruments, the use of external debt continues to be directed to support priority spending to encourage economic growth," he said in his statement, quoted on Sunday, January 19.
Denny conveyed that the government's external debt is still managed credible and accountable to support spending, including the Health Services and Social Activities Sector by 20.9 percent, Government Administration, Defense, and Social Security, which is mandatory at around 19.4 percent, Education Services as much as 16.8 percent, Construction at 13.5 percent and Financial Services and Insurance at around 9.0 percent of the total government's external debt.
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According to Denny, the government's external debt position remains under control considering that almost all external debt has a long-term tenor with a share of 99.9 percent of the total government's external debt.
Denny conveyed that 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.
"This effort is carried out by minimizing risks that can affect economic stability," he concluded.
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