"The external debt grew by 10.2 percent, and is relatively more stable than growth in the previous quarter which was influenced by the increase in government debt amid the slowdown of private debt," Bank Indonesia explained.
The rise of Indonesia's external debt has signaled that foreign investors have confidence in the country's economic prospects.
Throughout Q3, a significant number of domestic government securities (SBN) were owned by non-resident investors. It resulted in the rise of government debt by 10.3 percent year-on-year (y-o-y) to US$194.4 billion
The figure reflected great confidence of the foreign investors in the domestic economy amid the world's financial slowdown, the central bank stated.
On the other hand, private debts showed slow growth of 10.4 percent (y-o-y) compared to the second quarter this year of 11.3 percent (y-o-y). The slow growth was due to an increase in the bank's debts.
The country's private debt covered 75.4 market shares, and it included the financial sectors, as well as the insurance, manufacture, mining and quarrying sectors.
Despite the slow growth, Bank Indonesia reaffirmed that the country's external debt remained healthy as it was carefully managed.
"The debt's healthy structure is reflected from the external debt ratio to the gross domestic product which now reaches 36.3 percent," it stated. (INE)