Indonesia's Foreign Debt Sees Uptick in the Last Quarter of 2017

Indonesia’s foreign debt grew at a faster pace in the last quarter of 2017 compared to the previous quarter, according to a report by Bank Indonesia published on Monday (19/02). (Reuters Photo/Iqro Rinaldi)

By : Adinda Normala | on 1:08 PM February 20, 2018
Category : Business, Economy

Jakarta. Indonesia’s foreign debt grew at a faster pace in the last quarter of 2017 compared to the previous quarter, according to a report by Bank Indonesia published on Monday (19/02).

The country’s total outstanding foreign debt at the end of December 2017 grew by 10 percent annually to $352.2 billion, faster compared to an 4.5 percent growth in the previous quarter.

The debt remained at 34 percent of gross domestic product (GDP), the same as the previous quarter and at the end of 2016.

"Bank Indonesia views the development of external debt in the fourth quarter of 2017 to remain manageable," the central bank said in a statement.

"Bank Indonesia will persevere to monitor the development of external debt to assure that it can optimally play a role in supporting financing infrastructure," the note continued.

Long-term debts, which are due in more than a year, account for 86 percent of the total foreign debt, or $302 billion, meaning the liquidity risk to the country is negligible.

The debt was mainly in the financial, manufacturing, mining, electricity and gas and water sectors, which accounted for $270 billion, decreasing slightly to 76.9 percent at the end of December from 77 percent in the previous quarter.

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