Michelle Natalia
"The Government remains firmly committed to maintaining prudential, efficient and accountable external debt management, as well as preserving credibility in servicing principal and interest payments promptly. As a component of State Revenue and Expenditure Budget (APBN) financing instruments, external debt in the second quarter of 2023 remained focused on support to fund productive and priority sectors, particularly ongoing efforts to maintain solid economic growth in Indonesia amid global economic uncertainty," he stated.
"External debt support encompasses human health and social activities (24.1% of total government external debt); public administration, defence and compulsory social security (18.0%); education (16.8%); construction (14.2%); as well as insurance and financial services (10.1%), amongst others. The current position of government external debt is considered safe and manageable, with nearly all, or 99.8% of total government external debt, dominated by long-term maturities," he explained.
Private external debt also declined in comparison to the previous quarter. The position of private external debt retreated to USD194.4 billion at the end of the second quarter of 2023 from USD199.7 billion in the last quarter. Annually, private external debt experienced a deeper 5.6% (yoy) contraction compared with a 3.0% (yoy) contraction in the first quarter of 2023.
Such developments were underpinned by external debt at financial and non-financial corporations, which experienced 7.4% (yoy) and 5.1% (yoy) contractions, respectively, compared with the last quarter contraction, which both recorded 3.0% (yoy).
By sector, the main contributors to private external debt in the reporting period were the manufacturing industry; insurance and financial services; electricity, gas, steam and air conditioning supply; as well as mining and quarrying, accounting collectively for 78.2% of total private external debt.
