economy

Indonesia's Foreign Debt Down In The First Quarter 2024

"Indonesia's OVERSEAS DEBT position in the first quarter of 2024 was recorded at US$403.9 billion, down from US$408.5 billion in the fourth quarter of 2023. The decline in OVERSEAS DEBT position was sourced from both public and private sector OVERSEAS DEBT. With this development, Indonesia's OVERSEAS DEBT on an annual basis contracted by 0.02% (yoy), after growing by 3.0% (yoy) in the previous quarter.   

Government FOREIGN OWNERSHIP recorded a decline. The government's OVERSEAS DEBT position in the first quarter of 2024 was recorded at USD 192.2 billion, down from USD 196.6 billion in the previous quarter. On an annual basis, the government's OVERSEAS DEBT contracted by 0.9% (yoy), after growing by 5.4% (yoy) in the previous quarter. The decline in the government's OVERSEAS DEBT position was mainly influenced by the movement of non-resident investors' placements in domestic Government Securities (SBN) to other investment instruments in line with the increased uncertainty in global financial markets. The government is committed to maintaining its credibility by meeting its debt principal and interest payment obligations on time, and managing its OVERSEAS DEBT flexibly and opportunistically in terms of timing, tenor, currency, and instruments to obtain the most efficient and optimal financing. 

As one of the components in the state budget financing instrument, the utilization of FOREIGN OBLIGATIONS continues to be directed to support the financing of productive sectors as well as government priority expenditures, which mainly include the Health Services and Social Activities sector (21.1% of total government FOREIGN OBLIGATIONS); Government Administration, Defense, and Compulsory Social Security (18.3%); Education Services (16.9%); Construction (13.7%); and Financial and Insurance Services (9.6%). The government's OVERSEAS DEBT position is relatively safe and manageable given that almost all OVERSEAS DEBT has long-term tenors with a share of 99.98% of total government OVERSEAS DEBT.

Private external debt also declined. The position of private external debt in the first quarter of 2024 was recorded at 197.0 billion US dollars, lower than the position in the previous quarter of 198.4 billion US dollars. On an annual basis, private external debt contracted by 1.8% (yoy), deeper than the contraction in the previous quarter of 1.2% (yoy). The contraction in FOREIGN OWNERSHIP growth came from nonfinancial corporations and financial corporations, which contracted by 1.8% (yoy) and 1.6% (yoy) respectively. By economic sector, the largest private FOREIGN DEBT came from the Manufacturing Industry Sector; Financial Services and Insurance; Procurement of Electricity, Gas, Steam/Hot Water, and Cold Air; as well as the Manufacturing Industry Sector."