Michelle Natalia
As a component of State Budget (APBN) financing instruments, external debt allocation remained focused on supporting government efforts to fund productive sectors and priority expenditures, particularly ongoing efforts to bolster and maintain solid economic growth in Indonesia amid global economic uncertainty.
Such support encompasses human health and social activities (24.0% of total government external debt), public administration, defence and compulsory social security (17.8%), education (16.7%), construction (14.2%), as well as insurance and financial services (10.4%), amongst others.
“The current position of government external debt is considered safe and manageable, with nearly all, or 99.9% of total government external debt, dominated by long-term maturities,” he added.
Private external debt also decreased from the previous month. The position of private external debt was down to USD198.6 billion in February 2023 from USD201.0 billion the month earlier.
Annually, private external debt experienced a deeper 3.4% (yoy) contraction in February 2023 compared with a 1.7% (yoy) contraction in January 2023.
