A man exits the Bank Indonesia headquarters in Jakarta. (Photo: Bloomberg) Jakarta (VNA) – Indonesia's foreign debt was recorded at 404.3 billion USD at the end of the fourth quarterlast year, comprising public debt (government and central bank) of 202.9billion USD, and private debt, including state-owned enterprises, of 201.4billion USD.
Indonesia’s foreign debt decelerated to 7.7 percentyear-on-year (yoy), from 10.4 percent yoy in the previous quarter, according tothe Bank Indonesia (BI).
The government’s foreign debt totalled 199.9billion USD in the fourth quarter of 2019, up 10.3 percent yoy. The growth wassupported by an influx of foreign capital to the domestic government securitiesmarket and the issuance ofdual currency global bonds, specifically in the Euro and US dollar.
These conditions mirrored solidinvestor confidence in Indonesia’s economic outlook and attractive financialmarkets, as well as less uncertainty in global financial markets.
The largestportion of the government’s foreign debt was directed towards productive sectors that could promote economic growth and boost publicwelfare, such as the human health and social work activities sector, which accounted for 19.1 percent of the totaldebt; the construction sector,16.6 percent; the educationsector, 16.2 percent; the publicadministration, defense and compulsory social security sector, 15.4 percent;and the financial andinsurance sector, 13.3 percent.
Meanwhile,private foreign debt grew 6.5percent yoy, down from 10.8 percent yoy during the last quarter.
The debt wasdominated by the financial and insurance; electricity, gas, and water supply;manufacturing; and mining and drilling sectors, amounting to 76.9 percent of the total private foreign debt.
Indonesia has maintained a healthy foreign debt structure supported by theapplication of prudential principles in its management.
By the end oflast year, foreign debt made up36.1 percent of Indonesia’s gross domestic product (GDP). The structure continued to be dominated bylong-term debt, accounting for 88.3 percent of the total foreign debt./.
VNA
