BI Says Indonesia's External Debt Experiences Higher Growth in Q2

Medcom.id Dipublikasikan 05.46, 14/08 • https://www.medcom.id
Illustration (Photo:Medcom.id/M Rizal)

Jakarta: Indonesia's external debt was recorded at USD408.6 billion at the second quarter of 2020, consisted of public debt (Government and Central Bank) of USD199.3 billion, as well as private debt (including state-owned enterprises) of USD209.3 billion. 

Indonesia’s external debt grew 5.0 percent (yoy), higher than 0.6 percent (yoy), influenced by net drawing transactions from the Government and private external debt. 

In addition, the Rupiah appreciation against the US dollar also contributed to an increase in Rupiah-denominated external debt.

The position of government’s external debt was registered at USD196.5 billion or grew by 2.1 percent (yoy), reversing a 3,6 percent (yoy) contraction in the previous quarter. 

The higher position was primarily due to global Sukuk issuance to fulfill government financing targets, including a series of Green Sukuk, supports climate change financing. 

In addition, foreign capital inflows to government securities (SBN) market were sufficiently high, indicating a positive perception of macroeconomic policy management in mitigating the cobid-19 pandemic impact, maintaining stability, and nurturing a national economic recovery. 

Private’s external debt grew at 8.2 percent (yoy), higher than 4,7 percent (yoy) in the previous quarter. 

Such development was influenced by an increase of nonfinancial corporation external debt, amid a contraction of financial corporation external debt. 

"Indonesia's external debt maintained a healthy structure supported by the prudential principle application in its management," Bank Indonesia Communication Departement Head Onny Widjanarko said in a statement on Friday.

Indonesia's external debt to Gross Domestic Product (GDP) ratio in the second quarter of 2020 was 37.3 percent, increased from 34.5 percent in the previous quarter. 

Nevertheless, the debt structure remained dominated by long-term debt, accounted for 89.0 percent of the total external debt. 

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