Private business debts continue to plunge: BI

Jakarta (ANTARA News) – The Indonesian central bank, Bank Indonesia (BI), has reported that private business debts dropped by 2.7 percent in the third quarter of 2016, compared to the same period of 2015 year-on-year (yoy).

The downward trend reflects a continuation of the 2.3 percent decline in the second semester of 2016.

External debts of the private sector at the end of the third quarter of 2016 were recorded at US$163.1 billion or about 50.1 percent of Indonesias total external debts valued at US$325.3 billion, according to a press statement of BI here on Saturday.

“Private sectors external debts went down 2.7 percent yoy in the third quarter of 2016, more than the decline in the previous quarter,” Executive Director of BIs Communication Department, Tirta Segara, said.

He stated that most of the external debts of private businesses came from such fields as financial sector, processing industry, mining, electricity, gas and clean water.

These sectors accounted for 76.6 percent of the total external debts.

Compared with that in the second semester of 2016, the annual growth of external debt in processing industry, electricity, gas and clean water was slowing down. The same was true of the mining and financial sectors which remain stressed. The external debts of the government were US$162.2 billion or 49.9 percent of the total external debts. The governments foreign loans increased 20.8 percent yoy, higher than the 2016 second quarter growth of 17.9 percent yoy. (*)