Govvernment to reduce its borrowing in yen<\/p>\n
JAKARTA (JP): The government will reduce the portion of
\nforeign aid in yen to lower the risks caused by fluctuations on
\nthe foreign exchange market, an official says.<\/p>\n
\"It is imperative for the government to curb its borrowing,
\nespecially in Japanese yen because the currency has been
\nappreciating against other major currencies, including the U.S.
\ndollar,\" Bank Indonesia's director for foreign exchange affairs,
\nPaul Sutopo said yesterday.<\/p>\n
He said that the depreciation of the rupiah against the yen
\nhas in fact made more burdens for Indonesia because the yen's
\nappreciation will cause an increase in the repayment of debt
\nprincipals and interest.<\/p>\n
According to the Ministry of Finance, around 40 percent of the
\ngovernment's foreign debt is in the Japanese currency.<\/p>\n
Coordinating Minister for Economy and Finance Saleh Afiff said
\nrecently that Indonesia's total offshore borrowing has reached
\nUS$90 billion, including $54 billion owed by the government and
\n$36 billion by the private sector.<\/p>\n
However, Sutopo was quoted by Antara news agency as saying
\nyesterday that the appreciation of the yen did not take the
\ngovernment by surprise.<\/p>\n
\"We should not be so worried on the appreciation of the yen
\nbecause Bank Indonesia, the central bank, has so far assigned a
\nteam, called the Assets and Liabilities Committee, to manage
\nassets and liabilities based in major foreign currencies,\" he
\nsaid.<\/p>\n
\"I expect that the committee will be able to minimize any
\nrisks stemming from the appreciation of foreign currencies,\" he
\nadded.(fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govvernment-to-reduce-its-borrowing-in-yen-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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