Indonesia’s External Debt Recorded at USD416.6 billion

No. 23/13/DKom

The external debt was recorded at USD416.6 billion at the end of November 2020, consisting of public debt (Government and Central Bank) of USD206.5 billion and private debt (including state-owned enterprises) of USD210.1 billion. Indonesia's external debt grew by 3.9% (yoy), increased from 3.3% (yoy) in the previous month, mainly underpinned by the net withdrawal of government's external debt. In addition, the Rupiah appreciation against the US dollar also contributed to an increase in Rupiah-denominated external debt.

The government's external debt growth increased compared to the previous month. The government's external debt position at the end of November grew by 2.5% (yoy) amounted to USD203.7 billion, higher than 0.3% (yoy) in October 2020. Such development was influenced by maintained investor confidence, which prompted foreign capital inflow in the Government Securities (SBN) market, as well as the partial withdrawal of the foreign loan commitment to support the handling of the Covid-19 pandemic and the National Economic Recovery program. The management of government's external debt is conducted in a prudent and accountable manner to support government spending towards priority sectors, among others, human health & social work activities sector (share 23.8% % of external debt), construction sector (16.6%), education sector (16.6%), public administration, defense, & compulsory social security sector (11.8%), and financial & insurance sector (11.2%).

Private's external debt growth decelerated from the previous month. At the end of November 2020, the private sector's external debt grew at 5.2% (yoy), lower than 6.4% (yoy) in the previous month stemming from non-financial corporations debt, which decelerated from 8.3% (yoy) in October 2020 to 7.2% (yoy). Moreover, the external debt of financial institutions contracted by 1.4% (yoy). Several sectors with the most significant external debt share amounted to 77.0% of total private external debt, are the financial & insurance sector; electricity, gas, steam & air conditioning supply sector; manufacturing sector; and mining & drilling sector.

Indonesia's external debt maintained a healthy structure supported by the prudential principle application in its management.Indonesia's external debt to Gross Domestic Product (GDP) ratio in November 2020 is 39.1%, relatively stable than 38.8% in the previous month. The debt structure remained dominated by long-term debt, accounted for 89.3% of the total external debt. In close coordination with the government, Bank Indonesia continues to monitor external debt by promoting the prudential principle application in its management to maintain a solid external debt structure. Furthermore, external debt's role will also be optimized to support development financing and stimulate economic recovery by minimizing the risks that may affect macroeconomic stability.

The complete data on the latest Indonesia's external debt and its metadata can be obtained in the publication of Indonesia's External Debt Statistics (SULNI) January 2021 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website.

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