Indonesia`s External Debt Growth Slows, Says BI

Jakarta, MINA — Indonesia’s external debt grew at 4.8 percent (year-on-year), slower than the previous month’s growth of 5.5 percent (year-on-year).

Indonesia’s external debt at the end of July 2018 amounted to US$358.0 billion, consisting of government and central bank external debt of $180.8 billion, as well as private sector, including state-owned enterprises, external debt of $177.1 billion.

The slowdown in external debt growth is mainly due to lower growth of government’s external debt compared to the previous period, according to a statement from Bank Indonesia (BI) received by ANTARA here on Thursday.

The government`s external debt at the end of July 2018 grew 4.1 percent year-on-year, slower than the previous month`s growth of 6.1 percent (year-on-year).

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The government’s external debt at the end of July 2018 amounted to $177.4 billion, slightly higher compared to the previous month`s position due to net withdrawals of loans, particularly multilateral loans, and net purchases of domestic government securities (SBN) by foreign investors during July 2018.

After the Fed Fund Rate hike in mid-June 2018, financial markets are heading for a new equilibrium level and foreign investors are returning to the domestic SBN market.

The government constantly monitors the condition of the domestic financial market in order to maintain the stability of the SBN market, which is also influenced by external factors, in addition to optimizing the use of foreign loans to finance development in productive sectors.

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Meanwhile, the private`s external debt at the end of July 2018 is mainly owned by financial and insurance sector, manufacturing sector, electricity, gas and water supply sector, and mining sector.

The shares of these four sectors? external debt to the total private sector external debt reached 72.7 percent, increasing slightly compared to the previous month?s shares.

The annual external debt growth of the four sectors rose at the end of July 2018, with the highest increase charted by the electricity, gas & water supply sector, and manufacturing sector. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)