Indonesia‘s External Debt Sees Slight Dip in July, Bank Indonesia Reports
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Published September 15, 2024 | world-today-news.com
Overview
Jakarta – Indonesia’s external debt edged lower in July, reaching $432.5 billion, according to data released Monday by Bank Indonesia (BI). This represents a decrease from the $434.1 billion recorded in June.
Slowing Annual Growth
Despite the monthly decline,external debt still experienced a year-on-year increase of 4.1 percent. Though, this growth rate is a slowdown compared to the 6.3 percent increase observed in the previous month. BI attributes this moderation to slower expansion in public sector external debt and the strengthening of the U.S. dollar against the Indonesian rupiah and other global currencies.
Government Debt Trends
Government external debt totaled $211.7 billion in July, marking a 9.0 percent year-on-year rise. While still increasing,this is a deceleration from June’s 10.0 percent growth. The slower pace is linked to reduced growth in both external loans and government securities.
Private Sector Stability
Private external debt remained relatively stable at $195.6 billion, experiencing a slight contraction of 0.3 percent year-on-year – consistent wiht the contraction seen in June.
Healthy Debt Structure
Bank Indonesia maintains that Indonesia’s external debt structure remains healthy. The external debt-to-GDP ratio decreased to 30.0 percent in July, down from 30.5 percent in june. Notably, long-term external debt continues to constitute the majority, accounting for 85.5 percent of the total.
BI’s Commitment to Stability
bank Indonesia has affirmed its commitment to close coordination with the government to monitor external debt developments. The central bank’s focus remains on ensuring that external debt supports advancement financing and fosters sustainable economic growth while safeguarding macroeconomic stability.