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 Indonesia

In 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

Discuss