JAKARTA, NETRALNEWS.COM - Bank Indonesia reported during the third quarter of 2017, Indonesia's foreign debt rose 4.5 percent year-on-year compared to the same period in 2016 to become $343.1 billion.
Rising debt is due to the growth of public debt, or government debt and central bank, which rose 8.5 percent.
Private debt also climbed again by 0.6 percent YOY with the largest debt-disbursement sector in the financial, manufacturing, electricity, gas and water (LGA), and mining sectors with 77 percent.
Thus, public debt in the third quarter amounted to $175.9 billion and private debt $167.2 billion.
"The growth of ED [external debt] is also in line with the need for financing for infrastructure development," BI said in a report quoted on Friday (11/17/2017).
On the other hand, based on tenure, long-term external debt stood at 86.2 percent of total external debt and at the end of third quarter of 2017 grew 3.4 percent YOY. That figure shows a rise compared to the previous quarter which grew 1.5 percent YOY.
Short-term external debt was up 11.6 percent YOY, higher than the previous quarter's 10.5 percent YOY.
Central Bank deems the movement of external debt in the third quarter of 2017 still maintained. Indonesia's Gross Domestic Product (GDP) ratio at the end of third quarter of 2017 is 34 percent.
That ratio decreased when compared to the third quarter of 2016 which amounted to 36 percent. In addition, the ratio of short-term debt to total external debt is also relatively stable in the range of 13 percent.
"Both ED ratios are still better than the average of countries with the same economic strength [peers]," BI wrote.