Michelle Natalia
"In addition, the Government remains firmly committed to preserving credibility in servicing principal and interest payments promptly, as well as maintaining prudential, efficient and accountable external debt management. The external debt in October 2023 remained focused to support priority expenditures and social protection programs, thereby sustaining solid economic growth in Indonesia against a backdrop of elevating global economic uncertainty," BI Communication Department Executive Director Erwin Haryonosaid in a media release on Friday (15/12/2023).
External debt support encompasses human health and social activities (23.8% of total government external debt); public administration, defence and compulsory social security (18.4%); education (16.7%); construction (14.2%); as well as insurance and financial services (10.0%), amongst others.
"The current position of government external debt is relatively safe and manageable, with 99.9% of total government external debt, dominated by long-term maturities," he stated.
Indonesia's external debt was still manageable in October 2023, as reflected by a lower ratio of external debt to gross domestic product (GDP) of 28.7% from 28.9% one month earlier, dominated by long-term debt that accounted for 86.8% of total external debt.
"Seeking to maintain a healthy structure, Bank Indonesia and the Government continued strengthening coordination in terms of monitoring external debt, supported by the application of prudential principles, while optimising the role of external debt to support development financing and foster sustainable economic growth, as well as minimise the risks that could impact economic stability," he concluded. (WHY)
