According to a report by Bank Indonesia (BI), Indonesia's external debt (ULN) in October 2022 reached US$390.2 billion.
This debt value decreased by 1.3% compared to the previous month (month-on-month/mom), and decreased by 7.6% compared to the previous year (year-on-year/yoy).
"This development is due to a decrease in ULN in both the public sector (government and central bank) and the private sector," BI stated in its press release on Thursday (15/12/2022).
According to BI, the government's external debt decreased because a number of foreign investors withdrew their funds from domestic State Bonds (SBN), coupled with higher government debt repayments compared to new loan withdrawals.
On the other hand, private sector debt also decreased due to net repayments of loans and bonds from financial corporations and nonfinancial corporations.
"Indonesia's ULN in October 2022 remained controlled, reflected in the ratio of Indonesia's ULN to Gross Domestic Product (GDP) which remained at around 29.6%, decreasing from the previous month's ratio of 30.1%," said BI.
"Furthermore, the structure of Indonesia's ULN remains healthy, indicated by Indonesia's ULN which is still dominated by long-term ULN, with a share reaching 87.1% of the total ULN," it continued.
"The role of ULN will also continue to be optimized in supporting development financing and driving national economic recovery, while minimizing risks that can affect economic stability," BI concluded.
In October 2022, the largest lenders to Indonesia were Singapore with approximately US$59 billion, the United States with US$33.5 billion, and Japan with US$23.3 billion.
Meanwhile, the largest international lending organizations were the International Bank for Reconstruction and Development (IBRD) with US$18.4 billion and the Asian Development Bank (ADB) with US$9.7 billion.