22 May 2024 | News & Feature

External debt - Not the whole story

  • Indonesia’s external debt slightly declined to USD 403.9 Bn in Q1-24, with a greater decline in the government side (USD 4.4 Bn) compared to the private sector (USD 1.4 Bn).
  • The government’s weaker external debt position could be attributed to the sell-off in IDR government bonds by foreign investors, while the government are also choosing to reduce bond issuance.
  • The decline in the external debt of the private sector diverges from the trend in FX lending at home. Private sector’s external debt via banks could increase in the coming months if demand for FX from domestic companies remain strong.