2022 State Budget and Fiscal Incentives Presentation
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 (%)
Uruguay
83.5
86
89.7
259
corporates
(10.1%)
Hedging Ratio*
146 corporates
(5.8%)
Philippines
Panama
Mauritius
Kazakhstan
Indonesia
Colombia
0
20
25
26.2
27.2
35.2
36.5
38
37.7
39.2
39.4
40
56.3
54.9
56.3
80.8
86.7
95.4
2022F
2021F
56.1
53.3
57
60
80
100
2021
120
Source: Moody's Credit View Fundamental Data, August 2021
Regulation on Prudential Principle in Managing External Debt
Regulation Key Points
Object of Regulation
1 Jan 17 & beyond
Governs all foreign currency Debt
Hedging Ratio
≤ 3 months
> 3-6 months
Liquidity Ratio
(≤ 3 months)
Credit Rating
Hedging transaction to meet hedge ratio
Sanction
25%
25%
70%
Minimum rating of BB-
(State-owned Enterprises)
Must be done with a bank in
Indonesia
Applied
Source: Bank Indonesia
≤ 3 months
2264
corporates
(89.9%)
Liquidity Ratio*
299 corporates
(11.5%)
> 3-6 months
2377
corporates
(94.2%)
2224
corporates
(88.5%)
Comply Not Comply
*Data as of Q2-2021, with total population 2.,567 corporates
Source: Bank Indonesia
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