Indonesia's Foreign Debt Up 4.5 Percent

INDUSTRY.co.id - Jakarta, - Indonesia's foreign debt during the third quarter of 2017 rose 4.5 percent (year on year / yoy) compared to the same period of 2016 or to amounted to 343.1 billion US dollars due to growth in public debt, or government debt and central banks, 8.5 percent.

Private debt also increased again, by 0.6 percent (yoy) with the largest debt-disbursement sector in the financial sector, manufacturing, electricity, gas and water (LGA), and mining with 77 percent, according to the Statistics of Foreign Debt announced by Bank Indonesia (BI) in Jakarta, Friday (17/11/2017).

Thus, public debt in the third quarter amounted to 175.9 billion US dollars and private debt of 167.2 billion US dollars.

"The growth of ED is also in line with the need for financing for infrastructure development," BI wrote in its report.

On the other hand, based on long-term ED tenure of 86.2 percent of total external debt and at the end of Q3 / 2017 growth of 3.4 percent (yoy) that figure shows an increase compared to the previous quarter which grew 1.5 percent (yoy).

Short-term external debt grew 11.6 percent (yoy) to 44, higher than the previous quarter's 10.5 percent (yoy).

The Central Bank sees the movement of external debt in Q3 / 2017 is still maintained. Indonesia's Gross Domestic Product (GDP) ratio at the end of third quarter of 2017 is 34 percent. That ratio decreased when compared to the third quarter of 2016 which amounted to 36 percent. In addition, the ratio of short-term debt to total external debt is also relatively stable in the range of 13 percent.

"Both EDR ratios are still better than the average of countries with the same economic strength (peers)," BI wrote.