BI: Indonesia’s external debt stands at US$185.6B

Money speciment
Specimen of Rupiah banknotes. (Source: BI)

Jakarta, IO – Indonesia’s external debt amounted to US$185.6 billion as of end of July, according to Bank Indonesia (BI).

“It’s down US$187.3 billion month on month,” said BI spokesperson Erwin Haryono in a press release on Thursday (15/9).

Erwin explained the decline was due to the shift in the placement of funds by foreign investors in government bonds (SBN) market in line with expectations in global financial markets. Meanwhile, credit instruments were up from a month earlier. They were used to support financing for Covid-19 handling and infrastructure development as well as for development projects and other programs.

“The withdrawal of external debt in July is used to finance the productive sector and boost the national economic recovery. These include priority spending on the healthcare sector and social activities (24.5 percent of total external debt), education services (16.5 percent), government administration, defense, and social safety net (15.1 percent), construction (14.2 percent), and financial and insurance services (11.8 percent) sectors,” explained Erwin.

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Erwin said the government is committed to repay loans on time and manage external debt in a prudent, credible and accountable manner.

“The position of the government’s external debt is relatively safe and controlled,” he said. (rr)