Indonesia's Foreign Debt Growth Accelerates in March
Jakarta. Indonesia's robust infrastructure development has increased its long-term public debts, accelerating foreign debt growth at the end of the first quarter, a statement from Bank Indonesia said on Tuesday (17/05).
"Foreign debt development in the first quarter of 2016 remains healthy, but the risk to the national economy is something to watch out for," the statement said.
The country's total foreign debts inched up 5.7 percent to $316 billion by the end of March, compared to the same period a year earlier. The growth was faster than February's 3.7 percent year-on-year pace.
According to the central bank, foreign debts created by the public sector increased 14 percent year-on-year to $151.3 billion in the first quarter. In the previous quarter, growth was at 10 percent.
On the other hand, foreign debts created by the private sector dropped 1 percent in the period to $164.7 billion. In the previous quarter, debts grew by 2.3 percent.
Private sector debts were made mainly in the financial, manufacturing, mining and utility sectors, including in electricity, gas and water.
Indonesia's external debts are dominated by long-term ones—due in more than a year—totaling $277.9 billion or 88 percent of the total external debts, reducing liquidity risk for the country in the short term. Short-term external debts fell 8.4 percent to $38.1 billion.
"Bank Indonesia will keep an eye on foreign debt development, especially private ones, to ensure that debt volume will keep development financing afloat without risking macroeconomic stability," the statement said.
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