Indonesian Private Foreign Debts Fall 3.5 Percent in May

Jakarta, 15 Syawal 143/20 July 2016 (MINA – Indonesias private foreign debts fell 3.5 percent to US$163.6 billion in May 2016 compared to the same month last year,  Antara reported, quoting Bank Indonesia (BI), the central bank.

Compared to April 2016, the private foreign debts also dropped by US$1.6 billion from US$165.2 billion, BI Deputy Governor Perry Wajiyo said here on Tuesday.

The drop in private foreign debts was particularly the result of a shift in private foreign debt repayments to the start of year from the middle of year, he said.

Perry said the drop was also not caused by sluggish economic activities which did not need additional financing.

“There is tendency on the part of companies to repay debts earlier. And the trend is high this year. The companies are quite rational to do so,” he said.

The earlier-than-scheduled debt repayments were made not only to foreign creditors but also to domestic creditors, he noted.

“It is better for them to repay their debts earlier not only to foreign creditors but also to domestic banks,” he said.

According to BI data, the private foreign debts in May 2016 accounted for 52.1 percent of the countrys total foreign debts.

Public foreign debts which represented 47.9 percent of the total debts also fell to US$150.7 billion in May 2016 from US$153.8 billion a month earlier.

Overall, the countrys foreign debts reached US$314.3 billion in May 2016, down US$4.7 billion compared to the month before. Compared to May 2015, the foreign debts in May 2016 grew 5.7 percent. (T/R0/R01)

Mi’raj Islamic News Agency (MINA)