The country's external debt was recorded at USD404.3 billion, consisted of public debt (government and central bank) of USD202.9 billion, as well as private debt (including state-owned enterprises) of USD201.4 billion. The country’s external debt decelerated to 7.7 percent (yoy) from 10.4 percent (yoy) in the previous quarter.
"Government external debt growth slowed from the previous period," Bank Indonesia (BI) said in a press release issued on Monday, February 17, 2020.
Government external debt in the fourth quarter of 2019 was recorded at USD199.9 billion, which growth declined from 10.3 percent (yoy) to 9.1 percent (yoy) in the previous quarter. The growth was supported by influx of foreign capital to domestic government securities market and issuance of dual currency global bonds, namely in euro and US dollar.
Such conditions reflect solid investor confidence in the national economic outlook and attractive domestic financial markets, as well as less uncertainty in global financial markets. The management of government external debt is prioritized to finance economy, whereas the largest portion is directed towards productive sectors that could promoting economic growth and improving public welfare, among others, human health & social work activities sector (19.1 percent of government external debt), construction sector (16.6 percent), education sector (16.2 percent), public administration, defense & compulsory social security sector (15.4 percent), and financial & insurance sector (13.3 percent).
"Downward trend in private external debt growth continued from the previous quarter," it stated.
At the end of the fourth quarter of 2019, private external debt grew 6.5 percent (yoy), down from 10.8 percent (yoy) during the last quarter. The lower growth was led by financial institution external debt, which fell from 6.8 percent (yoy) to 2,9 percnt (yoy), as well as nonfinancial institution external debt which dropped from 12,1 percent (yoy) to 7,6 percent (yoy).
Indonesia's external debt maintained a healthy structure supported by the prudential principle application in its management. The condition was among others, reflected in the indicator of Indonesia's external debt to Gross Domestic Product (GDP) ratio in 2019 at 36,1 percent, which was relatively stable compared to the last quarter. In addition, the debt structure remained dominated by long-term debt, accounted for 88.3 percent of the total external debt.