Indonesia’s Foreign Debt Growth Slows Down in August

The Jakarta Globe – Jakarta. Indonesia’s foreign debt growth slowed down in August, as the increase in long-term debt was unmatched by the pace of decline in short-term debt, Bank Indonesia said in a statement on Monday (17/10).

Indonesia’s debt grew by 6.3 percent to $323 billion in August and 6.6 percent in July.

According to the central bank, Indonesia’s external debt position is dominated by long-term debt.

The country’s long-term foreign debt, which is due in more than a year, stood at $282.6 billion, or 87.5 percent of the total, at the end of August. It increased at an annual rate of 8.1 percent.

Meanwhile, the country’s short-term foreign debt reached $40.5 billion, 4.8 percent lower in August compared to a 3.7 percent decline in July.

“Bank Indonesia sees the growth in external debt at the end of August 2016 as remaining healthy but continues to be vigilant against the risk to the national economy,” the central bank said.

The report indicated that Indonesia’s public-sector foreign debt amounted to 49.4 percent of the total at the end of August. Public-sector debt increased to $159.7 billion, having grown by 19.2 percent annually compared to July, when it grew by 18.7 percent.

Private-sector debt reached $163.3 billion in the same period, down 3.9 percent compared to the same period a year ago.

Private debt was concentrated in the financial, manufacturing, mining, electricity, gas and water supply sectors — the total of these sectors constitute 75.5 percent of private-sector foreign debt.

“Bank Indonesia will continue to monitor the development of external debt, particularly private-sector external debt, to make sure that external debt plays an optimal role in supporting development financing without incurring risks that may affect macroeconomic stability,” the report said.

Date : WordPress › Error

There has been a critical error on this website.

Learn more about troubleshooting WordPress.