Indonesia Sets Record in Foreign Debt in May

"This development was driven by slower growth in public sector foreign debt and a contraction in private sector foreign debt," said Ramdan Denny Prakoso, executive director of Bank Indonesia's Communication Department.

Government foreign debt stood at 209.6 billion U.S. dollars during the month, growing 9.8 percent year-on-year, lower than the 10.4 percent year-on-year growth in April.

This trend was influenced by the maturity payment of international sovereign bonds, amid foreign capital inflows into domestic bonds, reflecting sustained global investor confidence in Indonesia's economic outlook, Ramdan added.

Meanwhile, private foreign debt continued to contract, standing at 196.4 billion U.S. dollars, with a year-on-year decline of 0.9 percent, higher than the 0.4 percent year-on-year contraction recorded in the previous month.

Ramdan emphasized that Indonesia's external debt structure remains sound, with a ratio of 30.6 percent to gross domestic product and dominated by long-term debt, which accounts for 84.6 percent.

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