Indonesia's Government and Central Bank External Debt Reaches US$210 Billion at the End of 2023

Based on data from Bank Indonesia (BI), total government and central bank external debt (ULN) reached US$210.07 billion in December 2023.

This figure increased by 2.66% compared to the previous month (month-on-month/mom), and increased by 7.36% compared to the same period last year (year-on-year/yoy).

By category, in December 2023, government ULN reached US$196.63 billion. This increased by 2.12% month-on-month (mom), and surged by 5.45% year-on-year (yoy).

Meanwhile, central bank ULN in December 2023 reached US$13.43 billion, up 11.18% month-on-month (mom), and soaring 46.14% year-on-year (yoy).

According to BI Deputy Governor Erwin Haryono, the increase in government ULN is mainly due to the drawdown of foreign loans, particularly multilateral loans, to support the financing of several programs and projects.

Erwin also mentioned that the increase in government ULN was influenced by increased portfolio investment in domestic and international State Debt Securities (SBN), along with the easing of global financial market uncertainty.

Although increasing, BI assesses that the government's ULN position remains relatively safe because 99.8% of its debt has a long-term tenor.

"In order to maintain a healthy ULN structure, Bank Indonesia and the government continue to strengthen coordination in monitoring ULN developments, supported by the application of prudent principles in its management," said Erwin in a press release on Thursday (February 15, 2024).

"The role of ULN will also continue to be optimized in supporting development financing and driving sustainable national economic growth, while minimizing risks that could affect economic stability," he added.