Indonesia's external debt was managed in October 2019. The external debt position at the end of October 2019 was recorded at USD400.6 billion, consisted of public debt (government and central bank) of USD202.0 billion and private debt (including state-owned enterprises) amounted to USD198.6 billion. Transaction of net drawing external debt coupled with the strengthening of the rupiah against US dollar hence boosted rupiah debt in terms of US dollar has accelerated debt growth from 10.4% (yoy) in the previous month to 11.9% (yoy). The rose of total external debt growth originated from government debt growth amidst a slowdown of private debt growth.
Government external debt growth increased in line with upbeat investor confidence in the national economic outlook and attractive returns on domestic financial investment assets. Government debt totalled USD199.2 billion in October 2019 as growth rose to 13.6% (yoy), induced by the influx of foreign capital to domestic government securities and global bonds issuance. The management of government external debt is prioritized to finance development, whereas the biggest portion is directed towards productive sectors that could promoting economic growth and improving public welfare, among others, human health & social work activities sector (19.0% of government external debt), construction sector (16.5%), education sector (16.1%), public administration, defense & compulsory social security sector (15.3%), and financial & insurance sector (13.4%).
Private external debt experienced slower growth from the previous month. At the end of October 2019, private debt growth moderated to 10.5% (yoy) from 10.7% (yoy), held back by a slower growth of nonbank financial corporations as well as nonfinancial corporations. By sector, the debt was dominated by the financial & insurance sector, electricity, gas, & water supply sector, manufacturing sector, and mining & drilling sector with share amounted to 76,6% to total private external debt.
Indonesia's external debt maintained a healthy structure supported by the prudential principle application in its management. The condition was among others reflected in indicator of Indonesia's external debt to Gross Domestic Product (GDP) ratio which was improved at 35.8% in October 2019. In addition, the debt structure remained dominated by long-term debt, accounted for 88.4% of the total external debt. Bank Indonesia, in close coordination with the Government, continues to monitor external debt by promoting the prudential principle application in its management to maintain a solid external debt structure. Furthermore, external debt's role will also be optimized in supporting development financing without incurring the risks which may affect macroeconomic stability.
The complete data on the latest Indonesia's external debt and its metadata can be obtained in the publication of Indonesia's External Debt Statistics (SULNI) December 2019 edition on the Bank Indonesia website. This publication can also be accessed through the Ministry of Finance website.