Jakarta, CNBC Indonesia – Indonesia’s External Debt (ULN) at the end of July 2020 was recorded at US $ 409.7 billion or approximately Rp 6,077.28 trillion at the current exchange rate. Up 4.1% over the same period last year (year-on-year/YoY).
Bank Indonesia (BI) reports, The external debt consists of the public sector (government and central bank) amounting to US $ 201.8 billion and the private sector (including BUMN) US $ 207.9 billion. Although external debt still grew in July, it was slower than the previous month, which rose 5.1% YoY.
“The position of government external debt at the end of July 2020 was recorded at US $ 199.0 billion or grew 2.3% YoY, relatively stable compared to the growth in June 2020 of 2.1% YoY. This development was due to the withdrawal of part of the commitment of multilateral institutions and issuance. Samurai Bonds to meet financing needs, including for handling the Covid-19 pandemic and the National Economic Recovery Program (PEN), “said a written statement from BI released Tuesday (15/9/2020).
Government external debt, continued BI’s press release, is managed in a measured and prudent manner to support priority spending, namely the health services sector and social activities (23.6% of total government external debt), the construction sector (16.5%), the education services sector ( 16.4%), the financial services and insurance sector (11.9%), as well as the government administration, defense and compulsory social security sector (11.8%).
Meanwhile, private sector external debt in July 2020 was recorded at 6.1% YoY, slower than the growth in June 2020 of 8.3% YoY. This development was influenced by the continued slowdown in external debt growth of non-financial institution companies (PBLK) and contraction in external debt of financial institutions (LK).
PBLK external debt grew by 8.7% YoY, slowing down from the previous month’s growth of 11.5% YoY. Meanwhile, LK external debt contracted by 2.2% YoY, slightly up from the 1.9% YoY contraction in the previous month. Some of the sectors with the largest share of external external debt, reaching 77.2% of total private external debt, are the financial services and insurance sector, the electricity, gas, steam / hot and cold air (LGA) procurement sector, the mining and quarrying sector, and the industrial sector. processing.
“The ratio of Indonesia’s external debt to Gross Domestic Product (GDP) at the end of July 2020 was 38.2%, an increase compared to the ratio in the previous month of 37.4%. Indonesia’s external debt structure remains dominated by long-term external debt with a share of 89.1% of the previous month. total external debt.
In order to maintain a healthy external debt structure, Bank Indonesia and the government continued to improve coordination in monitoring the development of external debt, supported by the application of prudential principles in its management. The role of external debt will also continue to be optimized in supporting development financing, by minimizing risks that can affect economic stability, “explained BI statement.
(aji / aji)