Thu, 01 Oct 2020

Indonesia's foreign debts grow 4.1 pct in July 2020

Xinhua
15 Sep 2020, 22:59 GMT+10

JAKARTA, Sept. 15 (Xinhua) -- The Indonesian central bank said on Tuesday that the country's foreign debts in July 2020 increased 4.1 percent year-on-year compared to a 5.1-percent growth in the previous month.

The sluggish growth was driven by the declining growth of private foreign debt amid the relatively stable growth of the government's foreign debt, Onny Widjanarko, spokesman for the Bank Indonesia, said in a statement.

He pointed out that Indonesia's foreign debts by the end of July 2020 were recorded at 409.7 billion U.S. dollars, with the public sector and the private sector amounting to 201.8 billion U.S. dollars and 207.9 billion U.S. dollars respectively.

"This condition was due to the withdrawals of commitments from several multilateral institutions and the issuance of Samurai bonds to meet the financing needs including those for the COVID-19 pandemic mitigation and the national economic recovery program," he said.

However, the structure of Indonesia's foreign debts remained healthy as they were managed prudently with the debt to gross domestic product (GDP) ratio reaching 38.2 percent, Widjanarko said.

"The structure of the Indonesian foreign debts remains dominated by the long-term debts with the share of 89.1 percent of the total foreign debts," he noted.

In efforts to maintain the healthy foreign debt structure, Bank Indonesia and the government continue to enhance coordination in monitoring the debt development which is supported by the prudent debt management, he said.

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