Indonesia's Foreign Debt Reaches Rp 5.534 Trillion in July 2019

Bank Indonesia (BI) recorded Indonesia's external debt (ULN) in July 2019 at US$395.3 billion, or approximately Rp5,534 trillion, a 10.3% increase compared to the same period last year. The increase in ULN was influenced by net ULN withdrawal transactions and the strengthening of the rupiah against the US dollar. This resulted in higher debt in rupiah compared to the US dollar denomination.

The increase in government debt occurred in the government and Bank Indonesia (BI) ULN, as well as private ULN. Government and BI ULN totaled US$197.5 billion, while private ULN amounted to US$197.8 billion.

BI stated that the increase in government and BI ULN was driven by the continued high inflow of foreign capital in the domestic Government Securities (SBN) market amidst a less conducive global dynamic. Meanwhile, the increase in private ULN was due to increased corporate investment needs in several key economic sectors.