Indonesia‘s External Debt Sees Slight Dip in โJuly, Bank Indonesia Reports
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Published September 15, 2024โข | world-today-news.com
Overview
Jakarta – Indonesia’s external โขdebt โedgedโข lower in July, reaching $432.5 billion, according โฃto data released Monday โฃby Bank Indonesia (BI). This โrepresents a decrease from the $434.1 billion recorded in June.
Slowing Annual Growth
Despite the monthly decline,external debt โขstill experienced a year-on-year increase of โ4.1 percent. Though, this growth rate isโข a slowdown โฃcompared to โฃthe 6.3 percent increase observed in the previous month. BI attributes this moderation to slower expansion โขin public sector external โdebt and the strengthening of the U.S. dollar against the Indonesian rupiah and โขotherโค global currencies.
Government Debt Trends
Government external debtโค totaled $211.7 billion in July,โค marking a 9.0 percent โคyear-on-year rise. While still increasing,this is a decelerationโฃ from June’s 10.0 percentโ growth. โขThe slowerโข pace isโ linked to reduced โขgrowth in both external loans and government securities.
Private Sector Stability
Private external debt remained relatively stable at $195.6 billion, experiencing a slight โคcontraction of 0.3 โpercent year-on-year – consistent wiht โthe contraction โฃseenโฃ in June.
Healthy Debtโข Structure
Bank Indonesia maintains that Indonesia’s external debt structure โฃremains healthy. The external debt-to-GDP ratioโค decreased โคtoโ 30.0 percent in July, โdown from 30.5 percent in june. Notably, long-termโ external debt continues to constitute the majority, accounting for 85.5โ percent of โthe total.
BI’s Commitment to Stability
bank Indonesia hasโฃ affirmed itsโ commitment to close coordination with the government toโค monitor external debt developments. The centralโ bank’s โfocus โremains on ensuring that external debt supports advancement financing and fosters โsustainable economic growth while safeguarding macroeconomic โstability.