BI points to slowdown in Indonesia’s external debt in May-end

Jakarta (ANTARA) – Indonesia’s external debt, while recording sluggish growth as of May-end of 2019, remained healthy.

Indonesia’s external debt, at the end of May 2019, was recorded at US$386.1 billion, constituting government and central bank debt of $189.3 billion as well as private debt, including state-owned enterprises, amounting to $196.9 billion, according to a statement from Bank Indonesia (BI) here on Friday.

Indonesia’s external debt grew by 7.4 percent year-on-year (yoy), slowing from the previous month’s growth of 8.8 percent yoy, mainly due to net repayments on external debt and weakening of the Indonesian currency rupiah against the greenback resulting in a less significant amount of rupiah debt in terms of the US dollar.

The slowdown of total external debt growth originated from private external debt in the midst of continued dismal growth in the government external debt.

The government external debt growth remained low. The outstanding of government external debt at May-end of 2019 reached $186.3 billion, recording an increasing growth of 3.9 percent yoy than 3.4 percent yoy in the previous month, driven by the issuance of global bonds.

In spite of the higher growth, the debt level plunged, from $186.7 billion at the end of April 2019. The decline was induced by a $0.5 billion fall from net repayments debt coupled with foreign ownership in the Domestic Government Securities (SBN) reducing by $1.5 billion, fuelled by rising uncertainties in the global financial markets as trade tensions spiraled.

The government’s external debt management is prioritized to finance development, dominated in productive sectors to promote growth and improve public welfare, among others, the human health and social work activities sector, constituting 18.8 percent of the government external debt; the construction sector, 16.4 percent; education sector, 15.8 percent; public administration and defense sector, 15.1 percent; and financial and insurance sector, 14.3 percent.

Growth in private external debt slowed. Private external debt outstanding at the end of May 2019 grew 11.3 percent yoy, decreasing from the previous month’s growth of 14.7 percent yoy, chiefly on account of declining debt in the financial and insurance sector.

At the end of the reporting period, private external debt was dominated by the financial and insurance sector; manufacturing sector; electricity, gas, and water supply sector; and mining and drilling sector, with the share to total private external debt reaching 75.2 percent.

The level of Indonesia’s external debt remained healthy as was apparent from factors including Indonesia’s external debt to Gross Domestic Product (GDP) ratio as of May-end 2019 that was relatively stable at 36.1 percent in comparison with conditions in the previous period.

Moreover, Indonesia’s external debt structure continued to be dominated by long-term debt, accounting for 87.3 percent of the total external debt.

In order to maintain a healthy external debt structure, BI has closely coordinated with the government to continually monitor external debt by promoting the application of prudential principles in its management.

Furthermore, the role of external debt will be optimized in supporting development financing without incurring the risks that may affect macroeconomic stability.

Source: ANTARA News

Trade Ministry consistent in expanding non-traditional export markets

Jakarta (ANTARA) – The Trade Ministry is consistently expanding non-traditional markets for Indonesia’s exports through trade missions, export promotions and bilateral agreements.

“Until the first semester of 2019, the Trade Ministry took a number of steps to increase exports, including conducting integrated trade promotion activities in a number of countries,” Director General of National Export Development of the Trade Ministry, Arlinda, said in Jakarta on Thursday.

In addition, the ministry also gave a special assignment to arrange the financing of exports to countries in Africa, South Asia and the Middle East.

In the short run, the ministry has adopted a policy to increase exports by selecting key export commodities, slashing costs, simplifying export procedures, conducting economic diplomacy and increasing access to export markets.

To select key export commodities, the government has designated export-oriented priority sectors classified into the IR 4.0 priority sector and the non-IR 4.0 priority sector.

The IR 4.0 priority sector comprises food and beverage, textile and textile products, electronics, automotive and chemical industries, while the non-IR 4.0 priority sector comprises fishery, general machinery, wood, rubber and furniture industries.

Overall, Indonesia’s exports in the first semester of 2019 reached US$80.32 billion, down 8.75 percent compared to the same period last year. Similarly, non-oil/non-gas exports fell 6.54 percent to $74.21 billion.

Source: ANTARA News

Central Kalimantan needs helitanker to support aerial firefighting

The aerial firefighting equipment is needed in Bagendang Hilir Village because the fire-ravaged areas are large, and water sources are located around five kilometers away from the main road

Sampit, C Kalimantan (ANTARA) – The Kotawaringin Timur Disaster Mitigation Agency (BPBD) needs a helitanker to back its efforts to extinguish wildfires ravaging more than 60 hectares of land in Bagendang Hilir Village, Central Kalimantan Province, the agency’s official said.

“The aerial firefighting equipment is needed in Bagendang Hilir Village because the fire-ravaged areas are large, and water sources are located around five kilometers away from the main road,” Head of the agency’s emergency and logistics unit, Yephi Hartady Periyanto, said.

The Kotawaringin Timur District Government had issued a wildfire alert status to anticipate the occurrences of land and forest fires, from July 3 to Oct 30, 2019, Periyanto said while speaking to journalists here Thursday.

The wildfires have ravaged certain areas outside Sampit city amid this year’s dry season.

The fires engulfed the areas of Bagendang Hilir Village in Mentaya Hilir Utara Subdistrict; Batuah Village in Seranau Subdistrict; and Ujung Pandaran Village in Teluk Sampit Subdistrict, he said.

The worst wildfires were found in Bagendang Hilir Village because the ravaged areas had reportedly reached more than 60 hectares while the width of areas that firefighters could have extinguished just reached around 15 hectares, he said.

“The hurdle is the location which is so far away and it is difficult to access water sources,” he said.

Several provinces in the Indonesian islands of Kalimantan and Sumatera have frequently been at the receiving end of recurring bush and forest fires partly due to vulnerable peatlands, and the ongoing agricultural practice of slash and burn.

In South Sumatra, the police had issued an ultimatum to the province’s plantation companies and farmers to not use slash and burn methods during this year’s dry season.

The slash and burn agricultural practice is completely prohibited as it can trigger the occurrences of land and forest fires that cause a haze. (INE)

Source: ANTARA News

Central Kalimantan needs helitanker to support aerial firefighting

The aerial firefighting equipment is needed in Bagendang Hilir Village because the fire-ravaged areas are large, and water sources are located around five kilometers away from the main road

Sampit, C Kalimantan (ANTARA) – The Kotawaringin Timur Disaster Mitigation Agency (BPBD) needs a helitanker to back its efforts to extinguish wildfires ravaging more than 60 hectares of land in Bagendang Hilir Village, Central Kalimantan Province, the agency’s official said.

“The aerial firefighting equipment is needed in Bagendang Hilir Village because the fire-ravaged areas are large, and water sources are located around five kilometers away from the main road,” Head of the agency’s emergency and logistics unit, Yephi Hartady Periyanto, said.

The Kotawaringin Timur District Government had issued a wildfire alert status to anticipate the occurrences of land and forest fires, from July 3 to Oct 30, 2019, Periyanto said while speaking to journalists here Thursday.

The wildfires have ravaged certain areas outside Sampit city amid this year’s dry season.

The fires engulfed the areas of Bagendang Hilir Village in Mentaya Hilir Utara Subdistrict; Batuah Village in Seranau Subdistrict; and Ujung Pandaran Village in Teluk Sampit Subdistrict, he said.

The worst wildfires were found in Bagendang Hilir Village because the ravaged areas had reportedly reached more than 60 hectares while the width of areas that firefighters could have extinguished just reached around 15 hectares, he said.

“The hurdle is the location which is so far away and it is difficult to access water sources,” he said.

Several provinces in the Indonesian islands of Kalimantan and Sumatera have frequently been at the receiving end of recurring bush and forest fires partly due to vulnerable peatlands, and the ongoing agricultural practice of slash and burn.

In South Sumatra, the police had issued an ultimatum to the province’s plantation companies and farmers to not use slash and burn methods during this year’s dry season.

The slash and burn agricultural practice is completely prohibited as it can trigger the occurrences of land and forest fires that cause a haze. (INE)

Source: ANTARA News