JAKARTA – Indonesia’s foreign debts increased 1.8% year-on-year (yoy) in May 2024 to USD 407.3 billion from USD 400.2 billion seen in May 2023. The debt also shifted 2.13% month-on-month (mom) from USD 398.81 billion in 2024.

Erwin Haryono, Assistant Governor of Department of Communication of Bank Indonesia (BI), mentioned that the source of swelling debts came from public (government and central bank) and private.

“Government debts were at USD 191 billion, or increasing 0.8% yoy, after being corrected 2.6% yoy in April 2024,” Haryono said in Jakarta (15/7).

The increased debt was triggered by foreign capital inflow in international and domestic government securities, following positive sentiment and investors’ trust in Indonesia’s economic prospects.

In the meantime, private debts in May 2024 was USD 197.6 billion, or increasing 0.4% yoy, contrasting to 2.8% yoy contraction in April 2024. Foreign debts from financial institution were seen contracted 2.6% yoy.

Based on economic sector, private sector’s debts mostly came from manufacturing industry, financial service and insurance companies, electricity and gas supply, as well as mining and quarrying, with market share of 78.9% of total foreign private debts. (LK/ZH)