JAKARTA, Aug. 14 (Xinhua) -- The Indonesian foreign debts in the second quarter 2020 were recorded at 408.6 billion U.S. dollars, consisting of the public sector's 199.3 billion U.S. dollar debt and the private sector's 209.3 billion U.S. dollar debt, according to the central bank.
The Indonesian foreign debts grew by 5.0 percent year on year or higher than 0.6 percent in the previous quarter, due to the net withdrawal transactions of the foreign debts, both of the public and private debts, Onny Widjanarko, spokesman for the central bank, Bank Indonesia, said in a statement here on Friday.
In addition, the strengthening of Indonesian rupiah against U.S. dollar has contributed to the increase in the value of foreign debts in the denomination of rupiah, he added.
He pointed out that the public foreign debt by the end of the second quarter 2020 was recorded at 196.5 billion U.S. dollars or grew by 2.1 percent (yoy), after a 3.6 percent contraction in the previous quarter (yoy).
The hike in the public foreign debt was in line with the issuance of the Global Sukuk (Islamic bonds) to meet the payment target.
According to him, the foreign debts were managed prudently and accountably to support prioritized budgets among others for the sectors of health and social activities, construction, education, financial services and insurance, government administration, defense, and social guarantee.
The private sector's foreign debt grew by 8.2 percent in the second quarter 2020 or higher than 4.7 percent in the previous quarter.
The Indonesian foreign debt structure remained fit as it was managed under the principle of prudence, Widjanarko noted, adding that the ratio of the Indonesian foreign debt to the gross domestic product (GDP) by the end of second quarter 2020 was recorded at 37.3 percent, an increase compared to 34.5 in the previous quarter.
"Despite the increase, the Indonesia foreign debt structure remains dominated by the long term foreign debts with the share of 89.0 percent of the total foreign debts," he noted.
In an effort to make the foreign debts remain fit, he said the central bank and the government would enhance coordination in monitoring the foreign debt development under the principle of prudence.
The role of the foreign debts would also be optimized in support of efforts to finance development by minimizing risks which could affect the economic stability, he said. Enditem
