According to Kontan, Indonesia’s Foreign Debt (ULN) in November 2022 increased to USD 392.6-billion, citing a Bank Indonesia (BI) report on Indonesia’s external debt position.
With this position, the November 2022 external debt contracted by 5.6-percent Year on Year (YoY) continuing the contraction in the previous month of 7.6-percent YoY.
“This growth contraction comes from public sector (government and central bank) external debt and the private sector,” wrote Executive Director, Head of the BI Communication Department Erwin Haryono in his official statement, Monday (16/1).
Even so, Erwin said, the structure of Indonesia’s external debt remained healthy, supported by the application of the precautionary principle in its management.
Indonesia’s external debt in November 2022 remained under control, reflected in the ratio of Indonesia’s external debt to Gross Domestic Product (GDP) which was maintained at around 29.7-percent, a slight increase compared to the previous month’s ratio of 29.5-percent.
In addition, Erwin added, Indonesia’s external debt structure remained healthy as demonstrated by Indonesia’s external debt which was still dominated by long-term external debt, with a share of 87-percent of total external debt.
In order to keep the external debt structure healthy, BI and the government continue to strengthen coordination in monitoring the development of external debt, supported by the application of the precautionary principle in its management.
“The role of external debt will also continue to be optimized in supporting development financing and encouraging national economic recovery, by minimizing risks that can affect economic stability,” he said.
Source: Kontan, Bank Indonesia