Indonesia's Foreign Debt Falls Again to US$403 Billion in Q2 2022

Indonesia's external debt (ULN) decreased again in the second quarter of 2022. Bank Indonesia (BI) recorded Indonesia's ULN at the end of Q2 2022 as US$403.0 billion, down US$9.6 billion compared to the previous quarter.

According to BI, the decrease in ULN was due to a reduction in ULN in both the public sector (Government and Central Bank) and the private sector.

The Government's ULN position in Q2 2022 was US$187.3 billion, down from US$196.2 billion in the previous quarter. Year-on-year, the Government's ULN contracted by 8.6% (yoy), a steeper contraction than the 3.4% (yoy) in the previous quarter.

The Central Bank's ULN also decreased from US$8.9 trillion in Q1 2022 to US$8.6 trillion in Q2 2022. However, the Central Bank's ULN increased year-on-year compared to Q2 2021, which stood at US$2.83 trillion.

Meanwhile, the private sector's ULN position in Q2 2022 was recorded at US$207.1 billion, slightly down from US$207.4 billion in Q1 2022. Year-on-year, the private sector's ULN contracted by 1.1% (yoy), lower than the 1.5% (yoy) contraction in the previous quarter.

The Central Bank assesses that Indonesia's ULN structure remains healthy, supported by the application of prudent principles in its management.

Indonesia's ULN in Q2 2022 remained controlled, reflected in the ratio of Indonesia's ULN to Gross Domestic Product (GDP), which remained at around 31.8%, down from 33.8% in the previous quarter.

Furthermore, the structure of Indonesia's ULN remains healthy, indicated by the fact that it is still dominated by long-term ULN, with a share reaching 86.7% of the total ULN.

(Read Also: [Is There a Threat of Recession? This is the Condition of Indonesia's Macroeconomy](https://databoks.katadata.co.id/datapublish/2022/07/18/ada-ancaman-resesi-ini-kondisi-ekonomi-makro-indonesia))