Indonesia's Foreign Debt Growth Slows in Last Quarter of 2016
Jakarta. Indonesia's foreign debt growth slowed in the fourth quarter of 2016 compared to the previous quarter, in line with a corresponding slowdown in its long-term foreign debt, according to a report by Bank Indonesia released on Friday (17/02).
The country's total outstanding foreign debt at the end of December 2016 grew by 2 percent annually to $317 billion, slower compared to an 8.2 percent growth in the previous quarter.
The debt was about 34 percent of the gross domestic product (GDP), lower compared to 36.2 percent at the end of the previous quarter and 36.1 at the end of 2015.
"External debt development at the end of the fourth quarter of 2016 remained healthy but we shall continue to be vigilant about risks to the national economy," the central bank said in a note.
"Moving forward, Bank Indonesia will keep monitoring the development of the external debt, particularly the private sector external debt," the statement said.
Long-term debts — debts due in more than a year — account for 87 percent of the total foreign debt, or $275 billion, meaning liquidity risk to the country is negligible.
Short-term foreign debt, on the other hand, reached $42.1 billion or only 13.3 percent of total foreign debt.
Half of the debt was incurred by the private sector — mainly the financial, manufacturing, mining, electricity, gas and water supply sectors — at $158.7 billion, down 5.6 percent annually, almost triple the 2 percent drop in the previous quarter.
Public sector foreign debt, which amounted to $158.3 billion, had grown 11 percent by the end of December, slower compared to the 20.8 percent in the previous quarter.
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