Michelle Natalia
"As a component of State Revenue and Expenditure Budget (APBN) financing instruments, external debt plays an important role in supporting government efforts to fund productive and priority sectors, thereby sustaining solid economic growth in Indonesia despite global economic uncertainty. External debt support encompasses human health and social activities (24.0% of total government external debt); public administration, defence and compulsory social security (18.1%); education (16.8%); construction (14.2%); as well as insurance and financial services (10.1%), amongst others," he explained.
"Furthermore, the current position of government external debt is considered safe and manageable, with 99.9% of total government external debt dominated by long-term maturities," he added.
On the other hand, private external debt maintained a contractionary trend. The position of private external debt tracked a slightly deeper 5.9% (yoy) contraction to USD193.9 billion in July 2023 after shrinking 5.8% (yoy) the month earlier.
Such developments were underpinned by external debt at financial corporations, which recorded a deeper 10.5% (yoy) contraction compared with 9.1% (yoy) in the previous period.
By sector, the main contributors to private external debt in the reporting period were the manufacturing industry; electricity, gas, steam and air conditioning supply; insurance and financial services; as well as mining and quarrying, accounting collectively for 78.1% of total private external debt. Furthermore, 75.6% of total private external debt was dominated by long-term tenors.
