Indonesia`s Foreign Debts Up 5.5 Percent as of May 2017

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Bank Indonesia believes the foreign debt growth as of May 2017 remains sound.

Jakarta, MINA – Indonesias foreign debts rose 5.5 percent to US$333.6 billion year-on-year as of May 2017 following a 11.8 percent rise in public debts to US$168.4 billion, Antara News reported, citing Bank Indonesia (BI).

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With the rise in public debts comprising the governments debts and the central banks debts, the public debts accounted for 50.5 percent of the countrys total foreign debts, BI said on Monday in an official statement on foreign debt statistics as of May 2017.

The public debts consisted of the governments debts worth US$164.3 billion and the central banks debts worth US$4 billion.

The governments debts were mostly concentrated in the financial, leasing and corporate services sector with a value of US$126.2 billion, and the service sector with a value of US$16.9 billion.

However, private debts fell 0.1 percent year-on-year to US$165.2 billion as of May 2017, accounting for 49.5 percent of the country’s total foreign debts. The decline was not as fast as that of April 2017 when the private debts plunged 3.2 percent year-on-year.

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“The drop in foreign debts of the private sector was caused by the foreign debts of financial institutions, namely banks and non-bank financial institutions, while the foreign debts of non-financial private institutions were on the increase,” the BI statistics said.

Based on the period of origin, long-term foreign debts rose 4.4 percent to US$289.2 billion, representing 86.7 percent of the total foreign debts.

The short-term debts meanwhile grew 13.6 percent to US$44.4 billion, contributing 13.3 percent of the total foreign debts.

“Bank Indonesia believes the foreign debt growth as of May 2017 remains sound but it will continue to stay alert for its risk to the national economy. Bank Indonesia will keep monitoring the development of foreign debts, particularly those of the private sector,” the bank said. (T/RS5/RS1)

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Mi’raj Islamic News Agency (MINA)

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