Thursday, 24 January 2019 | 13:15 WIB

Despite Rising, Indonesia Foreign Debts Decelerate in Q1 2018

Bank Indonesia.

JAKARTA, NNC - In the first quarter of 2018, Indonesia's foreign debts grew slower, rising 8.7 percent YOY. This is slowing compared to the previous quarter of 10.4 percent.

Bank Indonesia (BI) recorded foreign debt in the first quarter of 2018 amounting to USD358.7 billion, consisting of government debt and central bank of USD184.7 billion and private debt of USD174.0 billion.

"Deceleration in foreign debt growth is because the government and private sector debt grew lower than in the preceding quarter," Bank Indonesia official statement said on Wednesday (5/16/2018).

The government's foreign debts went up USD3.8 billion, which is aimed in addition to accelerating economic growth through increased productive activities and investment also to support its commitment to green funding that is environmentally friendly.

As of the end of the first quarter of 2018, the government's foreign debt revenues stood at USD181.1 billion, comprised of government securities (government bond and government sukuk) owned by non-residents amounting to USD124.8 billion and foreign creditor loans of USD56.3 billion.

"The rise comes primarily from the USD3 billion worth of Global Sukuk issuance, which includes a Green Bond or Green Sukuk Framework worth USD1.25 billion in line with eco-friendly green funding commitment," BI writes.

The private sector in the meantime recorded a slowing growth which is mainly influenced by the foreign debts in the manufacturing industry and the procurement of electricity, gas and steam/hot water (LGA) sector.

The growth of foreign debts in the manufacturing sector and LGA sector in the first quarter of 2018 was respectively at 4.4 percent and 19.3 percent on an annual basis, lower than the growth in the previous quarter.