Indonesia's External Debt Falls to US$397.4 Billion in August, Majority from World Bank and IMF

Bank Indonesia reported that Indonesia's external debt at the end of August 2022 was recorded at US$397.4 billion. This figure is lower than the previous month's external debt of US$400.2 billion.

This development was due to a decrease in external debt in both the public sector (Government and Central Bank) and the private sector. Year-on-year, Indonesia's external debt position in August 2022 contracted by 6.5% (yoy), a deeper contraction than the 4.1% (yoy) contraction in the previous month.

Indonesia's external debt is categorized into three types of creditors: countries, international organizations, and other creditors. The majority of Indonesia's debt comes from country creditors such as the United States, Singapore, Japan, and Hong Kong. Total debt from country creditors amounted to US$206.6 billion.

Next, Indonesia's external debt through other international organizations reached US$41.2 billion. Loans from two international financial institutions, the World Bank and the International Monetary Fund (IMF), dominate Indonesia's external debt, totaling US$27.7 billion or Rp411.6 trillion (at an exchange rate of Rp14,853/US$) in August of this year.

Loans from the World Bank Group through the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) are included. Indonesia's debt through IBRD amounted to US$18.8 billion or Rp279.4 trillion until August 2022. Meanwhile, debt to the IMF at the end of August was recorded at US$8.39 billion or Rp124.6 trillion. This loan value decreased by US$81 million compared to the end of July.

The remaining portion of Indonesia's debt, from other creditors, amounted to US$149.5 billion.