Indonesia’s foreign debt accelerated in January on the back of growing demand from the private sector to finance their expansion, data from Bank Indonesia showed on Monday.
The foreign debt rose to $269.3 billion, or 7.1 percent year-on-year. That was faster than the 4.6 percent pace recorded in December. Private sector debt to foreigners rose 12 percent to $141 million while public sector debt increased 1.9 percent to $127.9 million.
“The foreign debt growth in January is in line with the need to finance the economy,” the central bank said in a statement.
Indonesia’s current account — which is the widest record for goods and services trade — has been in deficit in the last three years, pushing firms to be more reliant on external financing for their expansion.