Indonesia’s foreign debt falls 5.9 bln USD as of November 2021

Jakarta (Indonesia Window) – Indonesia’s external debt fell 5.9 billion U.S. dollars in November 2021 to 416.4 billion U.S. dollars compared to 422.3 billion U.S. dollars in the previous month.

The decrease is caused by a decline in public sector external debts, namely those of the government and central bank as well as the private sector, according to Indonesia’s central bank, Bank Indonesia (BI).

On an annual basis, the position of external debt in November 2021 grew at a low 0.1 percent (yoy) or decreased compared to that in the previous month of 2.2 percent (yoy), according to BI’s official statement received here on Monday (Jan. 17).

The government’s external debt in November 2021 was recorded at 202.2 billion dollars, or lower than 204.9 billion dollars in the previous month, a drop of 0.7 percent (yoy). Whereas, in October 2021 the government’s foreign debt grew by 2.5 percent (yoy).

The decline in the government’s foreign debt was due to foreign capital inflows in the government securities market in line with global sentiment that pushed up the US bond yield trend following the Federal Open Market Committee (FOMC) meeting.

On the other hand, in November 2021, the government signed loans from multilateral institutions, including from the Asian Infrastructure Investment Bank (AIIB), that were used to support the handling of COVID-19.

So far, the government’s foreign debt is relatively safe and under control, considering that almost all of it has a long-term tenor with a share of 99.98 percent of the government’s total external debt.

Meanwhile, the private external debt again declined from 208.3 billion dollars in October 2021 to 205.2 billion dollars in November 2021, or contracted 2 percent (yoy) deeper than the 1 percent (yoy) in the previous period.

Indonesia’s external debt in November 2021 remained under control, as reflected in the ratio of Indonesia’s external debt to GDP (Gross Domestic Product) which was maintained at around 35.5 percent or decreased compared to that in the previous month of 36.1 percent.

Indonesia’s foreign debt is dominated by long-term external debt which has a share of 89 percent of the total foreign debt.

Reporting by Indonesia Window