Indonesia’s Foreign Debt 2024: Between Need and Caution

WARTAINDONESIA EN – Foreign debt 2024 is one of the important financing instruments for a country’s economy. FD can be used to finance infrastructure development, goods and services spending, and investment.

In Indonesia, FD has become an important source of financing for economic development. In January 2024, Indonesia’s FD position was recorded at 40.82 billion US dollars or around Rp6.384 trillion.

The increase in FD in January 2024 was mainly driven by the increase in government FD. The government’s FD position in January 2024 was recorded at 29.44 billion US dollars, up 1.9% from the government’s FD position in December 2023 of 29.01 billion US dollars.

The increase in government FD in January 2024 was mainly due to the issuance of government bonds (SBN) to finance the 2024 APBN. In addition, the increase in government FD was also due to the issuance of bilateral FD to finance infrastructure projects.

Meanwhile, the private sector’s FD position in January 2024 was recorded at 11.38 billion US dollars, down 0.6% from the private sector’s FD position in December 2023 of 11.45 billion US dollars.

The decline in private sector FD in January 2024 was mainly due to the repayment of loans by private banks to foreign banks. In addition, the decline in private sector FD was also due to the payment of debt that had matured.

In terms of sectors, private sector FD is dominated by the financial and insurance sector at 39.1%, the manufacturing sector at 25.5%, and the construction sector at 16.8%.

Government and private sector FD in Indonesia are still considered safe. This is reflected in the FD-to-GDP ratio, which is still below 40%. In January 2024, the FD-to-GDP ratio was recorded at 36.7%.

However, the government still needs to be cautious about the development of FD. This is because FD is a burden that must be borne by the country in the future.

There are several things that the government can do to maintain the stability of FD, including:

  • Conducting careful and transparent debt planning.
  • Improving the efficiency of state spending.
  • Increasing export competitiveness.

In addition, the government also needs to encourage increased domestic investment. This will reduce dependence on FD to finance development.

FD is an important financing instrument, but it also needs to be managed carefully. With good management, FD can be a catalyst for economic development.

Here are some examples of how FD can be used to finance economic development in Indonesia:

  • Infrastructure development, such as toll roads, bridges, and airports.
  • Funding for goods and services spending, such as procurement of medical equipment and education.
  • Investment in the industrial sector, such as manufacturing and tourism.

Infrastructure development is one of the urgent needs in Indonesia. FD can be used to finance large-scale infrastructure development, such as toll roads, bridges, and airports.

The government can also use FD to finance goods and services spending, such as procurement of medical equipment and education. This is important to improve the quality of life of the people.

FD can also be used for investment in the industrial sector, such as manufacturing and tourism. This will boost economic growth and create jobs.

With good management, FD can be a catalyst for Indonesia’s economic development.

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