March 2018, Indonesia's External Debt Increased by US$5 Billion

Indonesia's external debt reached US$358.73 billion in March 2018, a US$5.4 billion (1.53%) increase from the end of 2017, which stood at US$353.33 billion. Despite this increase, the condition of the external debt remains manageable, with a ratio to Gross Domestic Product (GDP) of 34.77%. This figure is significantly below the maximum limit of 60% of GDP and is also lower than the average of several peer countries.

Indonesia's total external debt comprises government and central bank debt of US$184.69 billion and private debt of US$174.05 billion. Government and central bank debt increased by US$4.06 billion (2.25%) in the first three months of the year compared to December 2017, while private debt increased by US$1.34 billion (0.78%).

Although external debt increased, Indonesia's GDP also rose by US$16.3 billion (1.6%) to US$1,031.87 billion in the first quarter of this year, compared to US$1,015.57 billion in the fourth quarter of last year. Similarly, Bank Indonesia's foreign exchange reserves reached US$124.9 billion at the end of April, sufficient to cover 7.4 months of imports and government external debt payments, exceeding the international adequacy standard of approximately 3 months of imports.

(Read Databoks: Indonesia's External Debt Condition in 1998 Compared to 2017)