Indonesia's External Debt Down to $413.6 Billion in January: BI
The decline stemmed from lower respective positions in the public sectors (Government and Central Bank) and private sectors.
Annually, external debt in January 2022 contracted 1.7% (yoy), a deeper contraction than declining 0.4% (yoy) the month earlier.
"Government external debt maintained a downward trend in January 2022," BI Communication Department Head Erwin Haryono said in a media release on Tuesday.
After retreating since September 2021, the position of government external debt in January 2022 was recorded at USD199.3 billion, down from USD200.2 billion in December 2021, with the contraction deepening to 5.4% (yoy) from 3.0% (yoy) in response to several SBN series reaching maturity in January 2022, including SBN denominated in US dollars.
In terms of foreign loans, bilateral loans experienced a net decline as loans used to finance several infrastructure projects were repaid.
"The position of government external debt remains safe and manageable in terms of short-term refinancing risk, considering that 99.9% of total government external debt is dominated by long-term tenors," he stated.
The position of private external debt stood at USD205.3 billion in January 2022, down from USD206.1 billion in December 2021.
Annually, private external debt contracted a deeper 1.0% (yoy) in January 2022, compared with a 0.8% (yoy) decline in the previous period.
The latest developments stemmed from the servicing of matured private foreign loans in January 2022, leading to a deeper 4.3% (yoy) contraction of external debt at financial corporations compared with a 4.2% (yoy) decrease recorded in December 2021, while non-financial corporations recorded a 0.1% (yoy) contraction after expanding 0.1% (yoy) in the previous period.
In addition, 76.3% of total private external debt is dominated by long-term maturities.
"The external debt structure in Indonesia remains sound, supported by prudential management," he stated.
External debt in Indonesia was manageable in January 2022, as reflected by a decrease in the ratio of external debt to gross domestic product (GDP) to 34.1% from 35.0% one month earlier.
In addition, external debt in Indonesia is still dominated by long-term debt, accounting for 88.2% of the total.
"Seeking to maintain a sound structure, Bank Indonesia and the Government continue to strengthen coordination in terms of monitoring external debt, supported by the application of prudential principles, while optimising the role of debt to support development financing and drive the national economic recovery, as well as minimize the risks that could impact economic stability," he concluded.
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