However, the growth in external debt in May 2019 was lesser than 8.8 percent yoy clocked in April 2019, Bank Indonesia (BI) stated while issuing the Indonesian external debt statistics for May 2019 here on Monday.
The external debts comprised $189.3 billion of the government external debt and the central bank liabilities, and $196.9 billion of state-owned enterprises' and private companies' external debt.
Private companies' external debts contributed to the increase in the country's external debt growth, while the government's external debt growth remained low, according to BI.
The government's external debt stood at $186.3 billion as of May 2019, or rising 3.9 percent as compared to 3.4 percent in April 2019 owing to the issuance of the government's global bonds.
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Despite the rise, the value of the government's external debt, in fact, dropped, compared to $186.7 billion in April 2019.
This development was influenced by net loan payment of $0.5 billion and the release of ownership of government securities (SBN) worth $1.5 billion by non-resident Indonesians. Reduced foreign ownership in SBN was influenced by uncertainty in the global financial markets that increased owing to the escalating trade tensions.
BI noted that the government's external debt utilization was prioritized to finance development programs, with the largest section for productive sectors that can support economic growth and public welfare, such as the health service sector and social activities, with a share of 18.8 percent of the total government external debt; the construction sector, 16.4 percent; education, 15.8 percent; government administration, defense, and compulsory social security, 15.1 percent; and financial and insurance service sector, 14.3 percent.
However, the private sector's external debt grew 11.3 percent yoy, lower than 14.7 percent in April 2019, owing to a decline in debt position in the financial services and insurance sectors.
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