Government Measures to Mitigate Covid-19 Risk
Strengthened Private External Debt Risk Management
Debt Burden Indicator (External Debt/GDP) Remains Comparable to Peers Rating Encouraging Corporates Compliance on Hedging Ratio & Liquidity Ratio
External Debt/GDP (%)
Hedging Ratio*
Uruguay
86.1
93.9
76.2
24.2
Philippines
24.7
22.2
36.3
Indonesia
35.3
361
48.7
Colombia
53
■2021F
42.7
2020F
53.6
Bulgaria
56.6
2019
56.3
0
20
40
60
80
100
Source: Moody's Credit View Fundamental Data, July 2020
Regulation on Prudential Principle in Managing External Debt
Regulation Key Points
Phase 1
Jan 1,2015
Phase 2
Jan 1,2016
Dec 31,2015
Dec 31,2016
Phase 3
Jan 1, 2017
& beyond
Object of Regulation
Hedging Ratio
< 3 months
>36 months
Liquidity Ratio (< 3 months)
Credit Rating
Hedging transaction to meet
hedge ratio
Sanction
Source: Bank Indonesia
Governs all Foreign Currency Debt
20%*
25%**
20%*
25%**
50%
70%
Not applicable
Minimum rating of BB-
not necessarily be done with a
bank in Indonesia
Must be done
with a bank in
Indonesia
As of Q IV-2015
Applied
230
corporates
(9.2%)
157
corporates
(6.3%)
≤ 3 months
2,257
corporates
(90.8%)
> 3 - 6 months
2,330
corporates
(93.7%)
Liquidity Ratio*
294 corporates
(11.8%)
2,193
corporates
(88.2%)
■Comply
■Not Comply
*Data as of Q2 2020, with total population 2..487 corporates
Source: Bank Indonesia
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