JAKARTA — Indonesia`s external debt at the end of April 2018 amounted to US$356.9 billion comprising government and central bank external debt of $183.8 billion as well as SOEs and the private sectors` $173.1 billion “Indonesia`s external debt at the end of April 2018 grew at 7.6 percent year-on-year (yoy), slower than the previous month`s growth of 8.8 percent yoy, as growth in external debt of both the public and private sectors had slowed down,” BI Executive Director of Communication Agusman Zainal noted in a statement here on Friday.
Foreign investor confidence in Indonesia`s fiscal management and government`s security market remains high amid global liquidity pressure. In April 2018, the government had issued US dollar- and euro-denominated global bonds in the SEC-Registered Shelf format, thereby allowing the government to issue bonds in the capital market whenever necessary. This issuance utilized the positive momentum of Moody`s upgrading of Indonesia`s credit rating on April 13, 2018, from Baa3 (positive) to Baa2 (stable), in addition to the improved macroeconomic conditions in early April.
Meanwhile, April 2018 witnessed the repayment of the government`s foreign loans and net selling of domestic government securities by foreign investors following the Fed Fund Rate hike in late March 2018. With such developments, the government`s external debt at the end of April 2018 grew slower than the previous month`s growth to stand at $180.5 billion, comprising $125.1 billion of government securities owned by non-residents and $55.4 billion of foreign loans. Professional and responsible external debt management is being consistently implemented by the government to maintain fiscal sustainability.