Foreign Debt Growth Slows in October: Central Bank
BY :TABITA DIELA
DECEMBER 19, 2016
Jakarta. Indonesia's foreign debts grew slower in October as both private and public sectors incur fewer debts, the central bank revealed in a note on Monday (19/12).
Foreign debts in Southeast Asia's biggest economy grew by 6.7 percent annually to $323.2 billion in October, slower than 7.8 percent in September.
"The lower growth was driven by a slowdown in the public and private sectors' external debts," Bank Indonesia said in the note.
Foreign debts in the public sector reached $159.8 billion by the end of October, growing 17 percent annually — slower compared to 20.8 percent a month earlier.
Private sector debts reached $163.5 billion in the same period, down by 1.7 percent, lower than 2.7 percent a month earlier.
Private debts were mainly incurred in the financial, manufacturing, mining, electricity, gas and water supply sectors — making up 76.7 percent of the total private foreign debt.
According to the monthly report, 87 percent of Indonesia's foreign debts are long-term ones — due in more than a year, which means they do not present much liquidity risk to the country.
Long-term foreign debts at the end of October reached $281.1 billion, up 6.4 percent since the same period a year earlier. This was slower compared to a growth of 8.7 percent in September.
Short-term foreign debts at the end of October reached $42.1 billion, growing 8.6 percent since the same period a year earlier — faster than 1.8 percent a month earlier.
"The development of external debt at the end of October 2016 remains healthy," the Bank Indonesia statement said. "But we will continue to be vigilant about risks to the national economy."
Bank Indonesia said it will continue monitoring the country's foreign debts to make sure they support development without adding risks to macroeconomic stability.