Foreign Debt Growth Stalls

TEMPO.CO, Jakarta - Bank Indonesia announced that Indonesia’s foreign debt growth in November 2013 stalled—from 5.9 percent in October 2013 to 3.7 percent. “Indonesia’s foreign debt in November 2013 was US$260.3 billion or 29.2 percent of the gross domestic product,” Bank Indonesia stated on its website yesterday.

Foreign debt growth slowdown was mainly caused by the decline in the public sector’s debt in November 2013 to US$123.3 billion, while the private sector’s debt reached US$137.1 billion.

The slowdown occurred to both short-term and long-term foreign debts. Long-term debt in November increased by 3.2 percent and short-term debt by six percent.

In that period, long-term foreign debt reached US$214.4 billion or 82.4 percent of the total foreign debt. Of this amount, the long-term debt in the public sector reached US$116.6 billion or 94.6 percent of the total foreign debt in the public sector, while the long-term debt in the private sector reached US$97.8 billion or 71.4 percent of the total foreign debt in the private sector.

Bank Indonesia said the decrease in foreign debt is in conjunction with domestic economic slowdown. National economy last year was estimated to have increased by 5.7 percent, lower than 2012’s 6.2 percent. Consequently, economic activities slowdown caused the decrease in financing needs, including through foreign debt.

Bank Indonesia Deputy Governor Perry Warjuyo previously said that the foreign exchange reserve of US$99.4 billion in late December 2013 indicated a healthy economy because it was equal to five months’ worth of imports. The foreign debt payment was also above the international adequacy standard of around three months’ worth of imports.

ANANDA PUTRI | MEGEL JEKSON