TEMPO.CO, Jakarta - Bank Indonesia (BI) has recorded a downtrend in foreign debt for bank lenders groups over the past four years. In its newly released foreign debt statistics, banks' portion of foreign loans dropped to US$30.24 billion at the end of 2017, slightly lower than 2016's US$30.25 billion.
The 2017 figure of banks' actuated foreign debt is the smallest since 2014.
ADB's economic observer Eric Sugandi said that, in general, banks' foreign debt is showing a declining trend, which followed a spike in 2014 that was the result of Indonesia's domestic economic conditions.
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"The economic slowdown that had occurred affected the demand for loans. Banks are also not as aggressive in seeking loans anymore, whilst continuing to settle their existing debts. As a result, their foreign loans declined," Eric said on Sunday, March 4.
Before 2014, banks' foreign debt averaged below US$25 billion. Then in 2014, the figure rose to US$31.67 billion. Since then, the figure never fell below US$30 billion.
For 2018, Eric projects slight changes in banks' foreign debts—whether it is an increase or a decrease.
This, he said, is because the "economic activity has improved from last year's. Up, or down, the changes in banks' foreign debt won't be much. The rupiah is also still under pressure, "he said.
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