Bank Indonesia Records $358.6b in Foreign Debt in May

Bank Indonesia recorded US$358.6 billion in foreign debt in May, a 0.2 percent increase from the $358.09 billion recorded in April.

Foreign debt grew 6.8 percent year-on-year (yoy) in May, lower than the growth in April at 8 percent yoy.

Government debt was recorded at $182.5 billion, while private debt hit $176.1 billion. The majority of government debt ($124.6 billion) was in the form of debt papers controlled by foreigners, while the remaining $54.7 billion was in the form of loans from foreign lenders.

“Government debt saw slower growth in May because of the release of government debt papers by foreign investors, in line with the development in global liquidity,” the central bank said in a statement released on Monday.

Bank Indonesia recorded that government debt papers owned by foreigners dropped by $1.1 billion with investors preparing for a possible hike in the federal funds rate.

Meanwhile, debt in the private sector came mostly as a result of investment in three sectors – mining, manufacturing and electricity procurement. The debt in the three sectors in May grew 0.2 percent, 3.3 percent and 11.7 percent respectively.

Meanwhile, the debt-to-gross domestic product (GDP) ratio in May was recorded at 34 percent. “This ratio is better than the average of Indonesia’s peer countries,” the central bank said, adding that 86.3 percent of the debt was long-term. (bbn)

The Jakarta Post


Related Articles

Leave a Reply