Foreign debt of both the public sector, including the government and the central bank, as well as the private sector recorded a decline, Chief Executive Director of BI’s Communications Department Erwin Haryono informed in a statement issued here on Tuesday.
The government's external debt declined from US$200.2 billion in December 2021 to US$199.3 billion, continuing a downward trend that started in September the same year.
The government remains committed to maintaining its credibility by repaying the principal and interest on time as well as managing external debt prudently, Haryono said.
The government utilized 24.5 percent of the foreign debt for health services and social activities, 16.5 percent for education services, as well as 15.1 percent for government administration, defense, and mandatory social security.
Hence, the government’s external debt was relatively safe and controlled, in accordance with short-term refinancing risk, considering that 99.9 percent of the external debt had long-term tenors, Haryono informed.
Meanwhile, private external debt declined from US$206.1 billion in December 2021 to US$205.3 billion in January 2022.
Regarding the sector, the largest private external debt came from the financial and insurance services; the electricity, gas, steam/hot water and cold air supply sector; the manufacturing industry; as well as the mining sector.
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Private foreign debt continued to be dominated by long-term debt, which accounted for 76.3 percent of the total private external debt.
According to Bank Indonesia, the ratio of Indonesia's external debt to gross domestic product (GDP) was around 34.1 percent in January 2022, a decline compared to December 2021, when it was recorded at 35 percent.
To maintain a healthy external debt structure, Bank Indonesia and the government are continuing to strengthen coordination in monitoring the utilization of external debt, managing the debt prudently, and minimizing debt risks, which could affect domestic economic stability.
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Translator: Agatha Victoria, Uyu Liman
Editor: Rahmad Nasution
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