- Indonesia’s external loans increased by 2.75% YoY in Q2-2024, primarily driven by Bank Indonesia due to higher SRBI issuance aimed at stabilising the Rupiah during the quarter.
- Despite limited growth in debt issuance, the government continues to take more loans from international lenders, with some of this debt being assumed by SOEs.
- Beyond SOEs, the private sector’s demand for external loans is primarily concentrated among foreign companies, indicating a continued investment cycle despite the slowing CAPEX realisation in the domestic corporate sector.
