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Jakarta Post

External debt up, driven by sukuk issuance

  • Marchio Irfan Gorbiano

    The Jakarta Post

Jakarta   /   Thu, April 18, 2019   /  07:57 am
The Jakarta Post Image
The government recently tapped into global markets when it issued US$750 million in green sukuk with a 5.5-year maturity period and $1.25 billion worth of regular global sukuk with a 10-year tenure.(Shutterstock/File)

Indonesia’s external debt rose in February, driven by foreign capital inflows into the government’s sukuk (Islamic bonds), according to data from Bank Indonesia (BI). The country’s external debt, which includes government and private sector borrowing, increased 8.8 percent year-on-year (yoy) to US$388.7 billion in February. The government’s yoy borrowing growth in February outpaced the previous month’s 7.2 percent yoy growth. The government and central bank’s borrowing recorded a 7.3 percent yoy growth in February to $190.8 billion. The growth was almost double the 3.9 percent yoy growth recorded in the previous month, driven by foreign capital inflows into the domestic bond market and coupled with the issuance of $2 billion in sukuk in February. The Finance Ministry had issued a $750 million green global sukuk with 5.5 years maturity, as well...