Handling Indonesia's debts<\/p>\n
The central bank, Bank Indonesia, has said that the country's
\ntotal foreign debt has reached US$137.6 billion -- consisting of
\nthe government's debts ($74.16 billion) and corporate debts
\n($63.43 billion).<\/p>\n
The government has been trying to repay its debts, which
\naccounts for the sharp decrease in the state budget.<\/p>\n
The Paris Club has rescheduled Indonesia's debts since 1988,
\nbut this has not had any great impact.<\/p>\n
Some non-governmental organizations and economic experts have
\nsuggested that Indonesia seek a debt haircut.<\/p>\n
The government however would not dare do such a thing, arguing
\nthat this might cause a drop in Indonesia's international
\neconomic rating.<\/p>\n
Standard and Poor's has lowered that rating from CCC+ to CCC.<\/p>\n
The government has also been eyeing two alternatives for the
\ndebt write-off -- a debt-for-nature swap or converting old debts
\ninto grants.<\/p>\n
The German government wants to convert a $50 million loan into
\na forest conservation fund.<\/p>\n
The concept of turning debts into grants will be presented at
\nthe Paris Club meeting on Feb 10-11 next year.<\/p>\n
But whatever efforts are made, we should support our
\ngovernment in reducing the country's huge debt.<\/p>\n
The government itself should allay the fears of foreign
\ncreditors, to ease Indonesia's burden.<\/p>\n
-- Republika, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/handling-indonesias-debts-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }