JAKARTA – Bank Indonesia (BI) reported that Indonesia’s foreign debts until November 2022 had reached USD 392.6 billion, shifting 5.6% higher than the same period last year. The foreign debts were mostly dominated by long-term debts.

In the press release today (16/1), Erwin Haryono, Executive Director of the Department of Communication of BI, reveale that there were contractions in the foreign debts growth, which coud be seen in the private sector and the public (the government and central bank) sector.

The government’s foreign debts clocked up to USD 181.16 billion, increasing 10.2% year-on-year (yoy). However, said growth was still inferior compared to October 2022 growth of 12.3% yoy. The positive sentiment and trust of global market players were deemed sustained, thus driving foreign investors to consider putting its investment portfolio in the domestic Government Securities (lit. Surat Berharga Negara/SBN).

Furthermore, foreign debts from the private sector reportedly reached USD 202.5 billion, growing 0.9% yoy. The increment was also lower than the one recorded in October 2022 of 3% yoy. The growth of foreign debts of both financial institutions and non-financial institution companies were indeed smaller, only arriving at 2% and 0.7% yoy, compared to 3.4% and 2.8% in October 2022.

According to Haryono, the structure of foreign debts was still under control, as the ratio of debt to Gross Domestic Product (GDP) is well maintained at 29.7%. The total foreign debts were dominated by long-term debts by 87%. (LK/ZH)