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Private sector foreign debt exceeds government’s in September
Bank Indonesia recorded US$369.8 billion in foreign debt as of the third quarter of 2018 -- $179.2 billion government debt and $180.6 billion private sector debt.
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Bank Indonesia deputy governor Dody Budi Waluyo (Antara/Puspa Perwitasari)
The figures shows that it is for the first time since March 2017 that private sector debt has exceeded government debt.
In the third quarter, private sector debt grew 6.7 percent year-on-year (yoy), higher than the previous quarter’s 5.8 percent, the central bank data shows.
The debt derived mostly from the financial and insurance sector, the manufacturing industry, energy sector and mining sector.
BI also recorded that nearly all segments of the private sector saw debt increases in the third quarter, with most of the debt incurring in production activities, which were expected to help boost economic growth.
Debt for investment increased 12.63 percent to $12.63 billion in September, while debt for financing grew 1.13 percent to $20.20 billion, the central bank says.
BI deputy governor Dody Budi Waluyo said private sector debt was a bit volatile, but he assured it was still in safe territory.
“BI has a mandatory measure for private sector debt – both for banking and other sectors. We have the authority to guard hedging, liquidity and ratings,” he said over the weekend as quoted by kontan.co.id. (bbn)
