Bank Indonesia : Indonesia’s External Debt Growth Slowed

Indonesia's external debt at the end of November 2016 grew 3.6% (yoy), slower than 6.5% (yoy) at the end of October 2016. The slowing growth was driven by a slowdown in public sector external debt and a decline in private sector external debt. The external debt slowdown occurred both in long-term and short-term external debt. With this development, the Indonesia's external debt position at the end of November 2016 stood at USD316.0 billion.

Based on the group of borrowers, the external debt position was dominated by private sector external debt. External debt position of public and private sector recorded at USD154.5 billion (48.9% of total external debt) and USD161.5 billion (51.1% of total external debt), respectively. Public sector external debt growth slowed to 12.1% (yoy) from 17.0% (yoy) in October 2016. Meanwhile, private sector external debt fell 3.4% (yoy), deeper than 2.0% (yoy) decline in October 2016.

Based on original maturity, Indonesia's external debt position was dominated by long-term external debt (86.7% of total external debt). Long-term external debt in November 2016 reached USD274.1 billion, consisting of public sector external debt amounted to USD153.7 billion (56.1% of total long-term external debt) and private sector external debt amounted to USD120.4 billion (43.9% of total long-term external debt). Meanwhile, short-term external debt amounted to USD42.0 billion (13.3% of total external debt), composed of private sector external debt amounted to USD41.2 billion (98.1% of total short-term external debt) and public sector external debt amounted to USD0.8 billion (1.9% of total short-term external debt). Long-term external debt grew 3.1% (yoy), lower than 6.2% (yoy) in October 2016, while the short-term external debt grew 7.1% (yoy), also lower than 8.3% (yoy) in October 2016.

In the private sector, the external debt position at the end of November 2016 was concentrated in the financial, manufacturing, mining, and electricity, gas and water supply sectors. The shares of these four sectors to total private sector external debt reached 76.8%. Compared to the previous month, external debt of the financial, mining, as well as electricity, gas and water supply sectors recorded negative annual growth in November 2016, while the external debt growth of manufacturing sector decelerated.

Bank Indonesia views the development of external debt at the end of November 2016 remains healthy but continues to be vigilant about the risks to the national economy. Moving forward, Bank Indonesia will persevere to monitor the development of external debt, particularly the private sector external debt. It is intended to give assurance that the external debt can play an optimal role in supporting development financing without incurring the risks that may affect macroeconomic stability.

The complete data concerning the Indonesia's external debt can be found in the latest External Debt Statistics of Indonesia in Bank Indonesia website.