Bank Indonesia has announced that foreign debt grew 5.5 percent year-on-year (yoy) to US$355.7 billion in the second quarter of 2018, slower than growth in the previous quarter, which was 8.9 percent.

Foreign debt consisted of $179.7 billion in government and Bank Indonesia debt and $176 billion in private debt, according to the central bank's official website bi.go.id.

BI says the slowdown in the growth of government debt is in line with the government's fiscal management policy, which prioritizes domestic resources in its financing strategy.

Up to the second quarter, government debt grew 6.1 percent yoy to $176.5 billion -- $122.3 billion from debt papers owned by foreigners and $54.2 billion from foreign creditors.

In the first quarter, government debt grew 11.6 percent.

Meanwhile, foreign debt of private manufacturing companies and the electricity, natural gas and water gas sector grew 1.1 and 16.1 percent yoy in the second quarter, respectively.

The central bank said the foreign debt structure in the second quarter was controllable and in a healthy condition.

“It is reflected in the foreign debt to gross domestic product (GDP) ratio, which was stable at 34 percent up to the second quarter,” BI says in its reports, adding that the ratio was better than that of peer countries and 86 percent of debt was long-term debt. (bbn)