Indonesia`s Foreign Debts Up 2.9 Percent

Indonesia saw its external debt continue to grow.

Jakarta, 20 Sha’ban 1438/17 May 2017 (MINA) – Indonesias foreign debts rose 2.9 percent to US$326.3 billion year-on-year at the end of the first quarter of 2017 as the private sector withdrew loans faster than they did in the previous quarter, Antara News reported, citing Bank Indonesia (BI) statistics.

As a result, the ratio of Indonesias foreign debts to the national domestic product (GDP) reached 34 percent and remained stable compared to the previous quarter, Executive Director of BI Communication Department Tirta Segara said here on Tuesday.

“The foreign debt hike was fueled by smaller-than-expected contraction of the private sectors foreign debts in the first quarter of 2017 compared to the previous quarter,” he said.

Also Read: BI Governor Named Best Governor of Asia Pacific

Compared to the same period last year, the ratio of foreign debts to gross domestic product in the first quarter of 2017 fell 3 percent to 34 percent from 37 percent.

The central bank noted that the growth of the private sectors foreign debts contracted in the first quarter of 2017 at -3.6 percent year-on-year to US$159.9 billion, accounting for 49 percent of the total foreign debts.

However, the private sectors foreign debts grew at a faster pace in the first quarter of 2017 than in the fourth quarter of 2016 as the private sectors foreign debts grew -5.5 percent.

Meanwhile, the governments debts in the first quarter of 2017 rose 10 percent compared to 11 percent in the fourth quarter of 2016.

Also Read: Bank Indonesia to Issue Commercial Paper Regulation July-End

The governments debts reached US$166.5 billion as of late March 2017, accounting for 51 percent of the total foreign debts.

The countrys short-term foreign debts reached US$43.9 billion at the end of the first quarter of 2017, representing 13.5 percent of the total foreign debts, and growing 16.3 percent year-on-year.

However, there was an indicator of rising foreign debts as the ratio of short-term debts to foreign exchange reserves rose to 36.1 percent in the first quarter of 2017 from 35.3 percent in the previous quarter. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)