Indonesia's Foreign Debt Remains Manageable at US$423.5 Billion in August 2021

Bank Indonesia (BI) recorded Indonesia's foreign debt (ULN) at US$423.5 billion in August 2021. This figure represents a 1.7% increase compared to the previous month's US$416.09 billion (month-to-month/m-to-m).

Year-on-year (yoy), Indonesia's ULN grew by 2.7% from US$412.26 billion in the same period last year. This debt growth is higher compared to July 2021, which only saw a 1.7% yoy increase.

"Indonesia's foreign debt (ULN) in August 2021 remained under control. This development is mainly due to increased ULN growth in the public sector (Government and Central Bank)," said Muhamad Nur, Head of the BI Communication Department's Group Director, in a statement in Jakarta on Friday, October 15, 2021.

Government ULN in August 2021 was recorded at US$207.5 billion. This figure represents a 0.7% increase from the previous month's US$205.8 billion (m-to-m). Compared to August 2020's US$200.14 billion, Government ULN grew by 3.7% (yoy). This growth is slightly higher than the previous month's 3.5% (yoy) growth.

Meanwhile, the Central Bank's ULN amounted to US$9.1 billion in August 2021. This figure increased by 223% from the previous month's US$2.83 billion (m-to-m). Year-on-year, the Central Bank's ULN grew by 225% (yoy). The Central Bank's ULN in August 2020 was recorded at US$2.81 billion.

Private sector ULN stood at US$206.8 billion in August 2021. This figure decreased by 0.27% from the previous month's US$207.4 billion. Private sector ULN was recorded at US$209.3 billion in August 2020. Compared to August of last year, private sector ULN decreased by 1.18%.

BI also noted that the structure of Indonesia's ULN remains healthy, supported by the application of prudent principles in its management. Indonesia's ULN in August 2021 remained controlled, reflected in the ratio of Indonesia's ULN to Gross Domestic Product (GDP) at 37.2%, which increased compared to the previous month's ratio of 36.6%.

Furthermore, Indonesia's ULN remains dominated by long-term ULN, with a share reaching 88.5% of the total ULN. In maintaining a healthy ULN structure, BI and the government continue to strengthen coordination in monitoring ULN developments, supported by prudent principles in its management.