Bank Indonesia Claims Foreign Debt Ratio Still 'Healthy'
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15 December 2020 17:51 WIB
TEMPO.CO, Jakarta - Indonesia’s foreign debt by the end of October has amounted to US$413.4 billion or Rp.5,858.29 trillion (exchange rates assumed at Rp14,171 per US dollar). This makes Indonesia’s debt-to-GDP ratio 38.8 percent by the end of October - an increase compared to last month’s 38.1 percent.
Despite the increased ratio, Bank Indonesia claims that the debt-to-GDP ratio remains to be 'healthy' but managed under precautionary principles.
“Indonesia’s healthy foreign debt structure is evident in the large share of long-term external debt reaching 89.1 percent from the total foreign debt,” wrote Bank Indonesia communication department chief Erwin Haryono in a statement on Tuesday, Dec. 15.
According to Erwin, Bank Indonesia will work closely with the government to strengthen the monitoring of the development of foreign debt. He also said the debts will be optimized to support financing infrastructure developments and push for the national economic recovery by minimizing the risks that can affect economic stability.
Read: Indonesia's Foreign Debt Climbs to US$413bn in October
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