Indonesia’s External Debt Growth Rate Declines in Q1 2020 due to a Decline in Foreign Investor Confidence

Bank Indonesia (BI) has reported that foreign debt growth in Indonesia decelerated in the first quarter of 2020 (Q1 2020) as overseas investors sold off Indonesian assets due to the uncertainties caused by the COVID-19 pandemic. The country's external debt, including government and private sector borrowing, was recorded at USD 389.3 billion, a 0.5% year-over-year (YoY) increase from 2019.

The Government of Indonesia’s foreign debt declined 3.6% YoY in Q1 2020 to USD 181 billion as overseas investors divested USD 9.75 billion in Indonesian assets during the quarter, switching over to safe-haven assets such as gold and USD. Public-sector debt was USD 183.8 billion, including those generated by the Government and BI....