BI: RI’s external debt fell in the first quarter to $ 415.6 billion

Indonesia’s external debt structure remains healthy, supported by the application of the precautionary principle in its management

Jakarta (medialnews) – Indonesia’s external debt through the end of the first quarter of 2021 was recorded at US $ 415.6 billion, down 0.4% (qtq) from the position of the external debt in the fourth quarter of 2020 amounting to US $ 417.5 billion.

“This development was motivated by the decline in the government’s external debt,” Bank Indonesia (BI) communication department chief Erwin Haryono said in a statement in Jakarta on Friday.

On an annual basis, the external debt (ULN) in the first quarter of 2021 increased by 7% (yoy) or more than the previous quarter to 3.5% (yoy).

Meanwhile, the government’s external debt in the first quarter of 2021 reached US $ 203.4 billion or 1.4% (qtq) lower than the position in the fourth quarter of 2020, in part due to loan repayments. maturing during the period January-March 2021. a bilateral loan.

On an annual basis, the government’s external debt in the first quarter of 2021 increased 12.4% (year-on-year) or more than 3.3% (year-on-year) in the previous quarter.

This was supported by the continued confidence of foreign investors, which stimulated capital inflows into the domestic government securities market (SBN).

In addition, the government has also withdrawn some of the foreign loan commitments from bilateral, multilateral and trade agreements in order to support the management of the COVID-19 pandemic and the National Economic Recovery Program (PEN).

“The government’s external debt is always managed carefully, credibly and responsibly to support priority spending,” he said.

Also read: BI: RI’s external debt increases by 4% in February 2021

This includes, among others, the public administration, defense and compulsory social security sectors, accounting for 17.7 percent of the government’s total external debt.

Next, the health and social services sector was 17.1 percent, the education services sector was 16.2 percent, the construction sector was 15.3 percent, and the finance and insurance accounted for 12.9 percent of the government’s total external debt.

According to BI, the government’s external debt position in the first quarter of 2021 is relatively secure given that almost all of it is long-term external debt representing 99.9% of the government’s total external debt.

In addition, private external debt in the first quarter of 2021 was recorded at 2.3% (yoy) or slower than the previous quarter’s growth of 3.8% (yoy).

This slowdown was caused by a slowdown in the growth of the external debt of non-financial institutions by 5.2% (year-on-year), lower than the 6.6% of the previous quarter (year-on-year).

In addition, the growth of the external debt of financial institutions also contracted to minus 7.1% (yoy) from minus 5.7% (yoy) in the previous quarter.

Also Read: Finance Minister Staff Said Indonesia Has Capacity To Pay Debt

Given these developments, the private external debt position in the first quarter of 2021 reached US $ 209.4 billion or 0.6% (qtq) higher than the position in the fourth quarter of 2020.

By sector, the largest private external debt with a share of 77.4% of total private external debt came from the financial services and insurance sector, the electricity, gas, steam or hot and cold water supply sector. , the mining and quarrying sector, and the manufacturing sector.

Long-term external debt was still dominated by long-term external debt with a 78.2 percent share of total private external debt.

“Indonesia’s external debt structure remains sound, supported by the application of the principle of prudence in management,” he said.

Indonesia’s external debt was under control in the first quarter of 2021, as evidenced by Indonesia’s continued ratio of external debt to gross domestic product (GDP) of around 39.1 percent, or a decrease from the ratio of the previous quarter of 39.4%.

In addition, the health structure of Indonesia’s external debt is also illustrated by the predominance of long-term external debt with an 89% share of total external debt.

Read also: Bamsoet asks the Minister of Finance to explain the use of Indonesia’s external debt

Journalist: Astrid Faidlatul Habibah
Editor: Risbiani Fardaniah
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