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Indonesia’s external debt grew 10.3 percent (YoY), above the 8.1 percent (YoY) posted in the previous month, mainly due to a net withdrawal of external debt and the strengthening of the rupiah against the US dollar hence resulting a more substantial amount of the rupiah debt in terms of the US dollar.
The rise in the total external debt stemmed from government and private external debt.
The rise in the government’s external debt was in line with the positive investor perception regarding Indonesia’s economy.
The government’s external debt rose 9.7 percent (YoY) to $194.5 billion, higher than 9.1 percent (YoY) in the earlier period.
An influx of foreign capital inflows to the domestic government securities (SBN) market remained strong despite adverse global economic dynamics.
Such developments reflect the investor confidence in the national economy and it is supported by attractive returns of portfolio investment in a domestic financial asset.
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