REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia (BI) will issue new external debt regulation in second half of 2014. BI governor, Agus DW Martowardojo said at Parliament building on Thursday.
External debt was recorded an increase of 8.6 billion USD or 3.1 percent at level of 284.9 billion USD per June 2014. Private debt is still a cause of the increase in debt.
The Indonesia's external debt consisted of public sector (131.7 billion USD or 46.2 percent) and private sector (153.2 billion USD or 53.8 percent of total external debt). BI deputy governor, Hendar added that the Central Bank reviewed the new regulation with government.
"Now we wait for the finalization. Hopefully it will be agreed soon," Hendar said as reported by Satya Festiani.
An increase in external debt ratio made an increase in debt to gross domestic products (GDP), from 32.33 percent in Q1 2014 to 33.86 percent in Q2 2014. Meanwhile, the debt service ratio rose from 46.42 percent on Q1 2014 to 48.28 percent in Q2 2014.
According to Hendar, DSR increase was caused a short maturity of trade financing loans, though it can be avoided by a roll over mechanism in short term loans. DSR can be improved if Indonesian exports improve too. BI hopes that mineral export value improved immediately after contract renegotiation.
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