Foreign Debt Indonesia Rose in February as Government Seeks Funds
Indonesia's foreign debt rose 3.7 percent (y/y) to USD $311.5 billion at end-February 2016, a higher growth pace compared to the 2.2 percent (y/y) recorded in the preceding month. The central bank of Indonesia (Bank Indonesia) informed that rising foreign debt was solely due to higher public sector foreign debt, while private sector foreign debt in fact eased. The Indonesian government took up long-term foreign debt to fund its ambitious infrastructure development programs. As a result, public sector external debt rose 9 percent to USD $146.9 billion in February, or 47.2 percent of Indonesia's total foreign debt.
Meanwhile, Indonesia's private sector external debt fell a modest 0.7 percent to USD $164.6 billion (nearly unchanged) in February 2016. Those private sector companies that took up most foreign debt are those engaged in the financial, manufacturing, mining, and utility sectors, as well as in electricity, gas and water. Together, privately-held companies active in these sectors accounted for 76.1 percent of total private sector foreign debt in February 2016.
Rising public sector foreign debt in February was mainly caused by rising (public sector) long-term debt. Long-term foreign debt rose 5.8 percent (y/y) to USD $273.2 billion, or 87.7 percent of Indonesia's total foreign debt (long-term debt is defined as debt that is due in more than one year). Short-term foreign debt fell 9.5 percent (y/y) to USD $38.3 billion, probably due to private companies' more prudent fiscal management (short-term debt can cause severe pressure in times of sharp rupiah depreciation). Indonesia's private companies have probably been eager to repay debt now the rupiah has strengthened considerably against the US dollar since the start of the year.
Indonesian Rupiah versus US Dollar (JISDOR):
| Source: Bank IndonesiaIn theory, declining private sector external debt could also signal that Indonesian companies withhold from investment and business expansion.
Indonesia's Foreign Debt - 2016:
| 2016 | Public Debt |
Private Debt | Total Debt |
| January | $143.4 billion | $164.6 billion | $308.0 billion |
| February | $146.9 billion | $164.6 billion | $311.5 billion |
Indonesia's Foreign Debt - 2015:
| 2015 | Public Debt |
Private Debt | Total Debt |
| January | $135.7 billion | $162.9 billion | $298.6 billion |
| February | $134.8 billion | $164.1 billion | $298.9 billion |
| March | $132.8 billion | $165.3 billion | $298.1 billion |
| April | $132.9 billion | $167.2 billion | $300.1 billion |
| May | $133.5 billion | $168.7 billion | $302.3 billion |
| June | $134.6 billion | $169.7 billion | $304.3 billion |
| July | $134.5 billion | $169.2 billion | $303.7 billion |
| August | $134.0 billion | $169.3 billion | $303.2 billion |
| September | $134.2 billion | $168.2 billion | $302.4 billion |
| October | $136.6 billion | $167.5 billion | $304.1 billion |
| November | $137.7 billion | $166.8 billion | $304.6 billion |
| December | $143.0 billion | $167.7 billion | $310.7 billion |
Indonesia's Foreign Debt - 2014:
| 2014 | Public Debt |
Private Debt | Total Debt |
| January | $127.9 billion | $141.4 billion | $269.3 billion |
| February | $129.0 billion | $143.1 billion | $272.1 billion |
| March | $130.5 billion | $146.0 billion | $276.5 billion |
| April | $131.0 billion | $145.6 billion | $276.6 billion |
| May | $132.2 billion | $151.5 billion | $283.7 billion |
| June | $131.7 billion | $153.2 billion | $284.9 billion |
| July | $134.2 billion | $156.4 billion | $290.6 billion |
| August | $134.2 billion | $156.2 billion | $290.4 billion |
| September | $132.9 billion | $159.3 billion | $292.3 billion |
| October | $133.2 billion | $161.3 billion | $294.5 billion |
| November | $133.9 billion | $160.5 billion | $294.4 billion |
| December | $129.7 billion | $162.8 billion | $292.6 billion |
Source: Bank Indonesia