The World Bank (World Bank) reported that Indonesia was included in the ranks of middle and low income countries with the largest external debt (ULN) in 2020.
According to the World Bank's International Debt Statistics (IDS) 2022, Indonesia's debt as of the end of 2020 reached US$417.53 billion or equivalent to Rp. 5,978 trillion (exchange rate of Rp. 14,300 per US dollar). The amount of debt increased from 402.11 billion in 2019 so that the debt ratio reached 41 percent of Indonesia's Gross Domestic Product (GDP). In 2019, the ratio was only around 37 percent of GDP.
"These measures are aimed at addressing the health emergency, mitigating the impact of the pandemic on the poor and vulnerable, and putting countries on the path to recovery," the World Bank wrote in a report quoted by Kompas.com, Monday (10/1/2022). .
This international institution noted that many low- and middle-income countries were in a position of vulnerable debt levels, even before the Covid-19 pandemic. The country has problems with slowing economic growth and high levels of public and external debt.
Therefore, a holistic approach to debt management is needed to help low- and middle-income countries assess and reduce risk and achieve sustainable debt levels.
“We need a comprehensive approach to debt issues, including debt reduction, faster restructuring and better transparency. Sustainable debt levels are critical to economic recovery and poverty reduction," the World Bank said.
Furthermore, the external debt-to-GDP ratio of low- and middle-income countries (excluding China) rose to 42 percent in 2020 from 37 percent in 2019. Meanwhile, the debt-to-export ratio increased to 154 percent in 2020 from 126 percent in 2019.
The following is a list of 10 low-middle-income countries with the highest external debt in 2020:
1. China: external debt reached 2.35 trillion US dollars or 16 percent of GDP
2. India: external debt of US$564.18 billion or 22 percent of GDP
3. Brazil: external debt of 549.23 billion US dollars, equivalent to 39 percent of GDP
4. Russia: external debt of US$ 475.52 billion or 33 percent of GDP
5. Mexico: External debt of US$467.51 billion or 45 percent of GDP
6. Turkey: external debt of 435.89 billion AD or 61 percent of GDP
7. Indonesia: external debt of US$417.53 billion or 41 percent of GDP
8. Argentina: external debt of US$253.76 billion, equivalent to 68 percent of GDP
9. Thailand: external debt 204.15 billion US dollars or 42 percent of GDP
10. South Africa: external debt of 170.77 billion US dollars or 58 percent of GDP
