REPUBLIKA.CO.ID, JAKARTA -- The private sector's external debt growth slowed. It happened primarily due to the external debt of mining, manufacturing, and the electricity, gas and water (EGW).

"The year-on-year external debt growth of the three sectors at the end of May 2018 were recorded at 0.2 percent, 3.3 percent, and 11.7 percent, respectively, lower than the growth in the preceding month," Bank Indonesia (BI) communication department executive director Agusman said in a statement here on Tuesday.

Meanwhile, the external debt growth of the financial sectors increased compared to previous month's growth. The shares of these four sectors' external debt to the private sector external debt reached 72.4 percent, relatively unchanged from the previous month.

Also read: Indonesia records slow growth in external debt in May-end

The development of external debt in May 2018 remains manageable, with healthy structure. This is reflected by the ratio of Indonesia's external debt to gross domestic product (GDP), which is stable at around 34 percent at the end May 2018. The ratio is better than the average ratio of peer countries.

Based on original maturity, Indonesia's external debt structure at the end of May 2018 was still dominated by long-term debt, accounting for 86.3 percent of the total external debt.

BI, in close coordination with the government, continues to monitor the development of external debt and optimize the external debt's role in supporting development financing without incurring the risks that may affect macroeconomic stability.

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