RI, Argentina are different: Minister<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Indonesia will not face a similar fate to Argentina because it
\nis facing different economic difficulties and is taking different
\nsolutions to deal with its problems, economic minister Dorodjatun
\nKuntjoro-Jakti announced, following a Cabinet meeting on
\nThursday.<\/p>\n
\"In the Cabinet meeting we specifically reported on the
\ndifference between Indonesia and what is being faced by
\nArgentina,\" Coordinating Minister for the Economy Dorodjatun
\nsaid.<\/p>\n
He said Argentina, with a population of just 37 million, had a
\nforeign public debt of some US$130 billion while Indonesia, with
\na 210-million-strong population had some $70 billion in public
\ndebt.<\/p>\n
While both are heavily indebted countries, they have different
\ndebt structures, he added.<\/p>\n
The bulk of Argentina's debt, some 95 percent, was obligatory
\nand largely privately syndicated, unlike Indonesia's debt, which
\ncomes from international loans.<\/p>\n
With the Argentine currency pegged to the dollar, its export
\ncompetitiveness will suffer greatly because of the dollar's
\nappreciation, while Indonesia had, on the contrary, benefited
\nfrom greater competitiveness and a larger variety of products,
\nDorodjatun said.<\/p>\n
\"So we are very different from Argentina,\" Dorodjatun said.<\/p>\n
Dorodjatun reaffirmed the government's commitment to honor its
\nobligation to repay its huge debt and would not follow
\nArgentina's move to halt payments of its debt.<\/p>\n
\"Our commitment is that we will honor all our foreign debt
\npayment obligations. We will not halt our debt payment,\" he said.<\/p>\n
The new Argentinean administration declared on Sunday that it
\nwas halting payments on its public debt, which stand at $132
\nbillion, the biggest default in history.<\/p>\n
Argentina's economic turmoil started when the International
\nMonetary Fund (IMF) decided last week to suspend a stimulus
\npackage intended to bail out the country's already evaporating
\neconomy.<\/p>\n
The failure of Argentina to meet the required target of zero
\ndeficit was the reason behind the fund's decision to suspend its
\n$1.3 billion in loans.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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