- Indonesia’s external debt increased 2.67% YoY, amounting to USD 407.1 Bn, with a 7.36% YoY increase on the government side and -1.9% YoY on the corporate side.
- The government’s external debt increased due to net bond issuance and drawing of the government’s external loans, combined with inflows amid strong sentiment in the market.
- On the other hand, corporations, both SOEs and private, are also in need of more financing as they are still on the expansion trend while revenues from commodities decline.
- We expect greater FX needs and therefore stronger external debt growth going forward, but relatively prudent external debt growth in previous years means little immediate risks.
