Indonesia’s External Debts Remain Manageable: BI
TEMPO.CO, Jakarta – The structure of Indonesia’s external debts at the end of July 2018 remained manageable with healthy level, Bank Indonesia (BI) said.
This is among others reflected in the ratio of the country’s external debts to gross domestic product (GDP) that is stable at around 34 percent at the end of the month, the central bank said in a statement released on Sunday.
The ratio is better than the average ratio of peer countries. Based on original maturity, the structure of Indonesia’s external debts at the end of July 2018 was still dominated by long-term debts, which accounted for 86.4 percent of the total external debts.
Bank Indonesia in close coordination with the government continues to monitor the development of external debts to optimize the external debts’ role in supporting financing without incurring the risks that may affect macroeconomic stability.
Meanwhile, Indonesia’s external debts grew by 4.8 percent year on year in July 2018, slower than 5.5 percent in the previous month.
Indonesia’s external debts at the end of July 2018 amounted to USD358.0 billion, consisting of government and central bank external debts worth USD180.8 billion, and private sector, including state-owned enterprises, external debts worth USD177.1 billion.
The decline in external debt growth was mainly caused by the lower growth of government’s external debts compared to the previous period.