The Jakarta Post
Bank Indonesia has said Indonesian foreign debts in both the public and private sectors increased by 10.1 percent year on year (yoy) to US$352.2 billion in the fourth quarter of 2017.
BI spokesman Agusman said on Monday in Jakarta that new foreign debts were used mostly to finance infrastructure projects.
“According to maturity, Indonesian foreign debt was still safe in the last quarter of 2017,” Agusman said as reported by tempo.co, adding that 86.1 percent of the foreign debt was long-term debts.
He added that long-term debts grew by 8.5 percent yoy in the fourth quarter, while short-term debts grew by 20.7 percent yoy.
Most of the debt was distributed among the finance industry, the manufacturing industry, the electricity, gas and clean water industry and the mining industry, Agusman said.
The private sector’s share in the four sectors reached 76.9 percent in the fourth quarter, showing a minimal decrease from the 77 percent recorded in the third quarter.
The central bank saw that the condition of the foreign debt, whose ratio to gross domestic product (GDP) was 34 percent, was still manageable, while the ratio of short-term debt to the total debt was stable at 13 percent, he added.
Agusman said Bank Indonesia would continue monitoring the Indonesian debt to ensure that it would play an important role in financing the country’s development and would not affect macroeconomic stability. (bbn)