Indonesia External Debt Growth Slowed

Bank Indonesia (BI) reported recently that Indonesia’s external debt at the end of October 2016 grew 6.7% (yoy), slower than 7.8% (yoy) at the end of September 2016. The slowing growth was driven by a slowdown in public sector external debt and a decline in private sector external debt. Long-term external debt grew 6.4% (yoy), lower than 8.7% (yoy) in September 2016. Meanwhile, short-term external debt grew 8.6% (yoy), up compared with September 2016 growth of 1.8% (yoy). With this development, the Indonesia’s external debt position at the end of October 2016 stood at US$ 323.2 billion.

Based on the group of borrowers, the external debt growth deceleration in October 2016 occurred in the public sector external debt, while private sector external debt remained declining. Public sector external debt growth slowed to 17.0% (yoy) from 20.8% (yoy) in September 2016 and private sector external debt declined by 1.7% (yoy) following a 2.7%( yoy) declined in September 2016. With this development, the external debt position of public and private sector respectively recorded at USD159.8 billion (49.4% of total external debt) and US$ 163.5 billion (50.6% of total external debt).

Based on original maturity, Indonesia’s external debt position was dominated by long-term external debt (87.0% of total external debt). Long-term external debt at the end of October 2016 reached US$ 281.1 billion, consisting of public sector external debt amounted to US$ 158.4 billion (56.3% of total long-term external debt) and private sector external debt amounted to USD122.7 billion (43.7% of total external debt long-term). Meanwhile, short-term external debt amounted to US$ 42.1 billion (13.0% of total external debt), comprised of private sector external debt amounted to US$ 40.7 billion (96.6% of total short-term external debt) and public sector external debt amounted to US$ 1.4 billion (3.4% of total short-term external debt).

In the private sector, the external debt position at the end of October 2016 was concentrated in the financial, manufacturing, mining, and electricity, gas and water supply sectors. The shares of these four sectors to total private external debt reached 76.7%. Compared to the previous month, external debt of the financial, mining, as well as electricity, gas and water supply sectors recorded negative annual growth in October 2016, while the external debt growth of manufacturing sector accelerated.