Michelle Natalia
Furthermore, 75.4% of total private external debt was dominated by long-term tenors.
"The structure of external debt in Indonesia remains sound, supported by prudential management," he added.
External debt was still manageable in the second quarter of 2023, as reflected by a ratio of external debt to gross domestic product (GDP) of 29.3% in the reporting period, down from 30.1% one quarter earlier. In addition, the sound structure of external debt in Indonesia is dominated by long-term debt, accounting for 87.7% 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 promoting sustainable economic growth, as well as minimise the risks that could impact economic stability," he concluded. (WHY)
