Bank Indonesia has announced that Indonesia’s foreign debt reached US$356.2 billion in February, up 9.5 percent growth from the preceding month.
The headline figure includes $181.4 billion of government and BI debt as well as $174.8 billion of private company debt.
“The foreign debt management is in line with the fiscal policy to accelerate economic growth through productive activities and investment,” BI said in a statement issued on Monday.
Government debt alone amounted to $177.9 billion at the end of February, consisting of government debt papers held by foreigners ($121.5 billion) and the debt from foreign creditors ($56.3 billion).
Without mentioning figures, BI said the government’s foreign debt costs were now lower than in the past, in line with investors’ greater trust in Indonesia due to the country’s improved economic fundamentals and upgraded credit ratings.
BI explained that the private sector debt was concentrated in the manufacturing sector, in mining and in the development of electricity, gas and water projects.
BI said the amount of foreign debt was under control, as reflected in the debt-to-GDP ratio of 34 percent, much lower than in neighboring countries.
“Bank Indonesia, in cooperation with the government, will continuously monitor the foreign debt to ensure the funds are used optimally to finance development, without ignoring the risks and economic stability,” the central bank added. (bbn)