JAKARTA, March 17 (Xinhua) -- Indonesia's external debt grew 5.1 percent year-on-year to 427.5 billion U.S. dollars at the end of January 2025, accelerating from 4.2 percent year-on-year growth in December 2024, the country's central bank announced on Monday.

"This external debt development was influenced by the public sector, which comprises both government and central bank debt," said Ramdan Denny Prakoso, executive director of Bank Indonesia's Communications Department.

Government external debt increased 5.3 percent year on year to 204.8 billion U.S. dollars, up from 3.3 percent year on year growth in December 2024, driven by higher foreign capital inflows into international government securities in line with strong investor confidence in Indonesia's economic outlook.

Meanwhile, private sector external debt stood at 194.4 billion U.S. dollars, contracting 1.7 percent year on year, the same rate as in December 2024. This decline was primarily due to a contraction in the financial corporations sector, which saw a deeper 2.3 percent year-on-year contraction compared to 1.0 percent in the previous month.

Bank Indonesia emphasized that Indonesia's external debt structure remains sound, with an external debt-to-GDP ratio of 30.3 percent in January 2025, down from 30.5 percent in December 2024. Additionally, 84.7 percent of total external debt was long-term, reflecting prudent debt management.

The central bank reiterated its commitment to optimizing the role of external debt to support development financing and promote sustainable economic growth, while continuing close coordination with the government to monitor external debt developments and minimize risks to economic stability. Enditem

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