Kunthi Fahmar Sandy
IDXChannel - Indonesia’s external debt position reached USD404.9 billion in January 2023, Bank Indonesia (BI) announced on Tuesday (14/3/2023).
Indonesia’s external debt position experienced a shallower 1.9 percent (yoy) contraction after declining 4.1 percent (yoy) the month earlier.
Acccording to BI Communication Department Executive Director Erwin Haryono, the contraction stemmed from government and private sector external debt developments. In addition, the external debt position in January 2023 was also influenced by change factors driven by broad-based US dollar depreciation against most global currencies, including the Rupiah.
“Government external debt maintained a contractionary phase. In January 2023, government external debt recorded a shallower 2.5% (yoy) contraction to reach a position of USD194.3 billion after contracting 6.8% (yoy) one month earlier,” he said in a press release.
The contraction was explained by an influx of portfolio investment in the domestic and international government securities (SBN) markets in line with positive sentiment given growing global market confidence.
Private external debt also maintained a contractionary trend.
