The position of external debt in Indonesia remained manageable in July 2023. External debt maintained a 0.9% (y/y) contraction to reach US$396.4 billion in July 2023 after retreating 1.5% (y/y) the month earlier. The contraction stemmed from private external debt.  The position of external debt in July 2023 was also influenced by broad-based US Dollar depreciation against most global currencies.

Government external debt remains manageable. In July 2023, the position of government external debt stood at US$193.2 billion, with annual growth accelerating to 4.1% (y/y) from 2.8% (y/y) in the previous period.  This was driven, among others, by foreign loans withdrawal to support program and project financing.

Private external debt maintained a contractionary trend. The position of private external debt tracked a slightly deeper 5.9% (y/y) contraction to US$193.9 billion in July 2023 after shrinking 5.8% (y/y) the month earlier.

The structure of external debt in Indonesia remains sound, supported by prudential management. External debt was still manageable in July 2023, as reflected by a lower ratio of external debt to gross domestic product (GDP) of 29.2% in the reporting period compared with 29.3% the month earlier, and dominated by long-term debt that accounted for 87.8% of the total.