- Indonesia’s external debt declined in Q4-24 to USD 424.8 Bn, growing by 3.3% YoY but contracting by -0.5% QoQ. Government sector growth slowed (to 9.8% YoY) while business sector (-2.2% YoY) contracted further.
- Rupiah depreciation, lower foreign holding, and negative net issuance during Q4-24 (in the case of SRBI) led to USD 3.2 Bn decline in government external debt.
- Business sector external debt continues to decline, signaling further slowdown in investment momentum in contrast to earlier FDI/DDI data.
- There could be a bigger speedbump ahead as large amount of SBN and SRBI is set to mature in Q2-25, but the government and BI seem to be preparing well via FX bonds issuance and more stringent export receipts (DHE) regulations.
