Thursday , May 26 2022

Third Quarter 2018, Foreign Overseas Debts grow slowly 4.2 per cent


JAKARTA, – Indonesia Bank said Indonesia's external debt was growing steadily at the end of the third quarter of 2018. Its growth was 4.2 per cent (a), slowing off compared to the growth of the previous quarter of 5.7 per cent (yoy) .

Up to the end of the third quarter, Indonesia's foreign debt was recorded at US $ 359.8 billion. The amount includes the government bank debt and a central bank of 179.2 billion dollars in the United States, as well as private debt, including state-owned enterprises that are worth 1806 billion dollars of the United States. In the BI press release, it was noted that the slowdown in the growth of external debt was a result of the slowdown in the government's external debt growth, in the growth of private external growth.

It is known that the government's external debt has grown by 2.2 per cent. Its growth was slow compared to the previous quarter of 6.1 per cent. The government's external debt site at the end of the third quarter of 2018 was US $ 176.1 billion.

As well as the slowdown growth, the Government's external debt position was also lower than the situation at the end of the second quarter of 2018 due to the decline in the Government Guarantee (SBN) situation held by foreign investors.

"The state of the domestic market of SBN is also influenced by this affected by high global uncertainty," said the BI press release announced on Friday (11/16/2018).

Although there was a private external debt in the third quarter of 2018, there was an increase. The position of private external debt at the end of the third quarter of 2018 grew by 6.7 per cent (late). The number increased compared to the previous quarter, which increased by 5.8 per cent (h).

Private sector debt is owned by the insurance and insurance sector sector, mainly the manufacturing, electricity, gas, steam / hot water (LGA) industry, and the excavation and quarrying sector. The proportion of external debt in the four sectors to total private external debt reached 72.7 per cent, a slight increase compared to the proportion in the previous quarter.

BI has stated, to date, that the development of Indonesia's external debt remains under control with a healthy structure. This, among others, is reflected from the Indonesia external debt ratio to gross domestic product (GDP) at the end of the third quarter of 2018, which was stable at around 34 per cent.

The ratio is still better than the peer country average. In addition, long-term external debt still dominated Indonesia's external debt structure with a proportion of 86.8 per cent of all external debt.

"The Indonesian Bank and Government continue to co-ordinate to monitor the development of external debt and optimize their role in supporting development funding, without creating risks that can affect economic stability," he said. press release.

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