The International Monetary Fund (IMF) reminded Indonesia to manage the debt prudently to prevent the excessive external imbalances as a result of the pandemic. In a report titled External Sector Report, states that a country like Indonesia, whenever possible, manages public debt carefully.

In this case, the IMF suggested that policies should be continued to address domestic imbalances to prevent excessive external imbalances. As reported by the central bank (BI), Indonesia’ external debt was recorded at US$408.6 billion at the second quarter (Q2) of 2020, consisted of public debt (government and BI) of $199.3 billion, as well as private debt (including state-owned enterprises) of $209.3 billion.

Indonesia’ external debt grew 5% compared to last year (YoY), higher than 0.6% (y/y), influenced by net drawing transactions from the government and private external debt. In addition, the Rupiah appreciation against the US dollar also contributed to an increase in Rupiah-denominated external debt.