TEMPO.CO, Jakarta - Bank Indonesia (BI) stated that the ratio of foreign debt still at the safe level. BI economic and monetary policy executive director Aida S Budiman explained that the current short-term external debt is at around 13.2 percent against Gross Domestic Product (GDP).

“For example, [when compared to] the Philippines that reaches 16.8 percent, Malaysia and Thailand's at above 14 percent, the short-term foreign debt is surely safe, it is lower than GDP,” said Aida during a press conference in BI Office, Kebon Sirih, Central Jakarta, Thursday, January 24.

Based on the central bank data, as of November 2018, Indonesia’s foreign debt amounted to US$372,9 billion or equal to Rp5,520 trillion with an assumed exchange rate of Rp14,000 per US dollar. The figure comprised of US$183,5 billion owed by the government and central bank and the US$189,3 billion owed by the private sectors including SOEs.

Up to November 2018, the state external debt grew US$12,3 billion when compared to the previous month, or by 7.0 percent year-on-year.

According to Aida, the short-term debt also remains at a safe level as its ratio is smaller than the long-term debt’s that amounted to 80 percent of all debts.

Further, the ability of Bank Indonesia to pay the debts is at a medium level or 34.5 percent against GDP. This condition is similar to other countries’ position, such as Brazil, Thailand, and a little above India. “With BI's foreign exchange reserves, all foreign debts are lowered because BI can meet it within two times,” Aida concluded.

DIAS PRASONGKO