Michelle Natalia
As a component of State Revenue and Expenditure Budget (APBN) financing instruments, external debt in May 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.
External debt support encompasses human health and social activities (24.1% of total government external debt); public administration, defence and compulsory social security (17.9%); education (16.8%); construction (14.2%); as well as insurance and financial services (10.2%), 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 added.
Private external debt also declined in comparison to the previous month. The position of private external debt retreated to USD196 billion at the end of May 2023 from USD199 billion the month earlier.
Annually, private external debt experienced a deeper 5.8% (yoy) contraction in May 2023 compared with a 4.6% (yoy) contraction in April 2023.
