Jakarta, CNN Indonesia –
World Bank (World Bank) states Indonesia enters the top 10 countries with debt the largest overseas (ULN) in low- and middle-income countries. This data without entering China who are also recorded as having foreign debt.
Quoting the World Bank report entitled International Debt Statistics 2021, Tuesday (13/10), Indonesia’s foreign debt always increases from year to year.
In detail, Indonesia’s foreign debt in 2009 amounted to US $ 179.4 billion, in 2015 amounting to US $ 307.74 billion, in 2016 amounting to US $ 318.94 billion, in 2017 amounting to US $ 353.56 billion, in 2018 amounting to US $ 379.58 billion , and in 2019 amounting to US $ 402.08 billion.
The majority of the debt is long term. For example, Indonesia’s long-term foreign debt in 2019 was US $ 354.54 billion, while the short-term debt was US $ 44.79 billion.
This position places Indonesia in the 6th rank of low and middle income countries that have large debts. Apart from Indonesia, other low and middle income countries that are in the top 10 with the most foreign debt are Argentina, Brazil, India, Mexico, South Africa, Thailand, Turkey, and Russia.
In total, external debt from low and middle income countries reached US $ 8.1 trillion in 2019. The figure is up 5.4 percent from the 2018 position.
The majority of this foreign debt is long term. In detail, the total long-term foreign debt reached US $ 6 trillion or 73 percent of the total foreign debt of low and middle income countries.
When compared to 2018, the external debt position of low and middle income countries increased by 7 percent. Meanwhile, short-term foreign debt only rose 1.5 percent to US $ 2.2 trillion in 2019.
The World Bank further notes that China accounted for 26 percent of the total foreign debt of low- and middle-income countries in 2019. Its debt volume rose 8 percent in 2019.
The increase in China’s foreign debt was driven by long-term debt, which increased 22 percent to US $ 909 billion in 2019. In contrast, China’s short-term foreign debt fell 1 percent to US $ 14 billion last year.
Foreign Investment
Meanwhile, the flow of foreign investment (foreign direct investment) to the East Asia and Pacific region, down 24 percent to US $ 186 billion in 2019. The most severe decline occurred in China, which reached 29 percent to US $ 131 billion.
“The decline was partly driven by trade tensions,” wrote the World Bank in its report.
On the other hand, foreign investment in Indonesia actually increased 24 percent to US $ 25 billion. The majority of investors invest in the manufacturing, mining and financial services sectors.
Other countries, such as Thailand and Vietnam, have the same fate as China, where the amount of direct investment in 2019 has decreased. The details, direct investment in Thailand fell 50 percent to US $ 6.8 billion and Vietnam fell 14 percent to US $ 12 billion.
(aud / agt)
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