Kunthi Fahmar Sandy
The position of private external debt recorded a 1.5 percent (yoy) contraction to USD201.2 billion in January 2023, after shrinking 1.8 percent (yoy) in the previous period. External debt at non-financial corporations experienced a shallower 1.1 percent (yoy) contraction in the reporting period compared with a 1.5 percent (yoy) decline in December 2022. Meanwhile, external debt at financial corporations recorded a deeper 3.1 percent (yoy) contraction in January 2023 after decreasing 2.7 percent (yoy) in the previous period.
By sector, the main contributors to private external debt in the reporting period were insurance and financial services; the manufacturing industry; electricity, gas, steam and air conditioning supply; as well as mining and quarrying, accounting collectively for 77.6 percent of total private external debt. Furthermore, 75.2 percent of total private external debt was dominated by long-term tenors.
Supported by prudential management, he stated, the structure of external debt in Indonesia remains sound.
External debt was still manageable in January 2023, as reflected by a ratio of external debt to gross domestic product (GDP) maintained at 30.3 percent in the reporting period, up slightly from 30.1 percent one month earlier.
In addition, the sound structure of external debt in Indonesia is dominated by long-term debt, accounting for 87.4 percent of total external debt.
“Seeking to maintain a healthy structure, Bank Indonesia and the Government continued to strengthen 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 accelerate the national economic recovery, as well as minimise the risks that could impact economic stability,” he concluded.
(WHY)
