Michelle Natalia
IDXChannel - The position of external debt in Indonesia declined in the second quarter of 2023 compared with the previous quarter, according to Bank Indonesia (BI).
At the end of the second quarter of 2023, the position of external debt in Indonesia stood at USD396.3 billion, down from USD403.2 billion in the first quarter of 2023.
"Annually, therefore, the external debt position in Indonesia experienced a 1.4% (yoy) contraction to maintain a 1.9% (yoy) contraction recorded in the last quarter. The contraction primarily stemmed from a lower private external debt position," BI Communication Department Erwin Haryono said in a media release on Tuesday (15/8/2023).
Government external debt declined from the previous quarter. At the end of the second quarter of 2023, government external debt was recorded at USD192.5 billion, down from USD194.0 billion in the first quarter of 2023, or growing 2.8% (yoy) annually.
The quarterly decline was driven by a net payment on maturing government's foreign loans and global bonds. Meanwhile, portfolio investment placements in the domestic government securities (SBN) increased, given the maintained positive sentiment of global financial market players.
