Growth of Indonesia's Foreign Debt Slows Down Conform Economic Trend
Growth of Indonesia's foreign debt has slowed down in July 2013 according to data from Indonesia's central bank (Bank Indonesia). Total foreign debt in July 2013 stood at USD $259.54 billion, a 7.3 percent increase compared to the same month in 2012. In June 2013, the year on year growth had been 8 percent. Bank Indonesia stated that it considers Indonesia's current foreign debt situation - both in the private and public sector - as healthy. Growth has slowed down as a consequence of the slowing national economy.
Indonesia's economic expansion in 2013 has been downgraded by various institutions - both national and international - from between 6.0-6.5 percent to between 5.5-6.0 percent. The International Monetary Fund expects Indonesia to grow 5.25 percent only in 2013.
The slowing down of Indonesia's foreign debt growth was triggered by the private sector. Indonesia's private sector foreign debt in July 2013 grew 9.5 percent (yoy) to USD $133.95 billion. This is lower than the 11.0 percent (yoy) growth rate in June. The public sector's foreign debt, on the other hand, increased slightly. In July, it grew 5.1 percent (yoy) to USD $125.6 billion, while the pace had been 4.9 percent (yoy) in the previous month.
With 82.3 percent, the bulk of Indonesia's total foreign debt constitutes long-term debt. The remaining 17.7 percent is short-term. About 68 percent of the country's total debt is US dollar denominated, and 12.5 percent in Japanese yen.
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