Thu Sep 19 08:27:00 UTC 2024: ## Indonesia’s Foreign Debt Remains Stable at $414.3 Billion

**Jakarta, Indonesia** – Bank Indonesia (BI) reported that Indonesia’s foreign debt (ULN) remained under control in July 2024, reaching US$414.3 billion or Rp6.322 trillion (at an exchange rate of Rp15.261), representing a 4.1% year-on-year (yoy) growth.

BI Executive Director of Communications Erwin Haryono stated that the ULN growth was primarily driven by the public sector, including both the government and the central bank.

Government ULN in July 2024 stood at US$194.3 billion or Rp2.965 trillion, marking a 0.6% yoy increase. This follows a 0.8% yoy contraction in June 2024. The growth was fueled by foreign loan drawdowns and increased inflows of foreign capital into government bonds (SBN).

Haryono emphasized that the government’s ULN is strategically utilized to support productive sector financing and prioritize spending, contributing to sustained economic growth.

The government’s ULN primarily supports expenditure in sectors such as health services and social activities (20.9% of the total), public administration, defense, and mandatory social security (18.9%), education (16.8%), construction (13.6%), and financial and insurance services (9.4%).

Haryono reassured the public that the government’s ULN remains manageable due to its long-term tenor, with almost all (99.98%) of the total ULN falling under this category.

Meanwhile, private sector ULN recorded a contraction in growth. In July 2024, it reached US$195.2 billion or Rp2.979 trillion, declining by 0.1% yoy following a low growth rate in June 2024. This was primarily driven by the contraction in ULN for non-financial corporations, which saw a 0.04% yoy decline.

The largest ULN contributions from the private sector came from processing industries, financial and insurance services, electricity and gas supply, and mining and quarrying, accounting for 78.9% of the total private sector ULN.

Haryono assured that the structure of Indonesia’s ULN remains healthy, reinforced by a prudent management approach. This is reflected in the stable ULN ratio to Gross Domestic Product (GDP) at 30.2% and the dominance of long-term ULN, accounting for 84.9% of the total. ULN continues to play a vital role in supporting financing for development and driving sustainable economic growth.

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