- Indonesia’s external debt increased in Q3-24 to USD 427.8 Bn, a growth of 4.7% QoQ and 8.7% YoY. The increase is entirely caused by the public sector which grew 17.2% YoY, while corporate sector declined by 0.6%.
- BI has increasingly relied on SRBI in its monetary policy, in parallel with the increasing use of external loans to fulfill the government's financing needs, amid continued turbulence in the global capital market.
- The bulk of external loans in the corporate sector has stemmed from China's efforts to internalize their supply chains, particularly in the manufacturing and trade sectors, while external debt by domestic companies declines in line with the weakening CAPEX cycle.
