Indonesia’s Foreign Debt As of June 2017 Reached 335.3 Billion US Dollars

JAKARTA – Bank Indonesia (BI) announced Indonesia’s Foreign Debt (ULN) at the end of second quarter of 2017 recorded 335.3 billion US dollars or grew by 2.9 percent.

The ED growth was slower when compared to the same period in 2016 of 6.8 percent. Based on the group of borrowers, the growth of ED is influenced by the slow growth of public sector debt and the continued contraction of private sector external debt growth.

At the end of the second quarter of 2017, public sector ULNs totaled 170.3 billion US dollars or 50.8 percent of total external debt or grew 7.3 percent, down from 10 percent in the preceding quarter.

On the other hand, private sector external debt was recorded at 165.0 billion US dollars or 49.2 percent of total external debt, or decreased 1.4. By the time period, Indonesia’s ED position in Q2 / 2017 remained dominated by long-term external debt. Long-term external debt position at end-Q2 2017 was recorded at 290.0 billion US dollars, while short-term external debt position was 45.3 billion US dollars.

According to the economic sector, the position of private external debt at the end of second quarter 2017 is concentrated in the financial sector, manufacturing, mining, and electricity, gas and water (LGA). “Bank Indonesia sees the development of external debt in Q2 / 2017 remains healthy and under control,” the official statement of Bank Indonesia, Jakarta, Tuesday (8/15/2017).

This is reflected, among others, from the ratio of Indonesian GDP to gross domestic product (GDP) at the end of second quarter 2017 recorded stable in the range of 34.2 percent and even decreased when compared to second quarter 2016 which amounted to 37.2 percent. “The ratio is also still better than the peers, such as Malaysia and Turkey,” he wrote.