RI's foreign debt still at safe level: Saleh Affif<\/p>\n
JAKARTA (JP): Indonesia's considerable offshore borrowing is
\nstill at a safe level because it has soft terms with low interest
\nrates and long grace periods, a minister says.<\/p>\n
Coordinating Minister for Economy and Finance Saleh Afiff told
\nreporters after a ministerial meeting yesterday Indonesia has
\nbeen relying on its official borrowing from the Consultative
\nGroup on Indonesia, whose members annually pledge loans mostly
\nwith favorable terms.<\/p>\n
\"The government also gets export credits with interest rates
\nlower than that on other commercial loans,\" Saleh said, adding
\nthat the government has appointed a special team to control the
\ninflow and management of offshore commercial loans.<\/p>\n
According to State Minister of National Development Planning\/
\nChairman of the National Development Planning Board (Bappenas)
\nGinandjar Kartasasmita, Indonesia's total offshore borrowing as
\nof March stood at US$83.3 billion, of which $55 billion or 66
\npercent was borrowed by the government and the remainder by the
\nprivate sector.<\/p>\n
He said 71.3 percent of government's debt, or $39.2 billion,
\nhas soft terms with low interest rates and low maturity.<\/p>\n
Sumitro Djojohadikusumo, a prominent economist, said on the
\nweekend that the government is managing foreign debt very well
\nand has used it for productive projects.<\/p>\n
Blue book<\/p>\n
Saleh explained that the use of foreign loans should be done
\naccording to a blue book prepared by Bappenas. \"The blue book
\nmentions priority projects and the use of loans should be in line
\nwith it,\" Saleh said.<\/p>\n
Saleh warned recently that Indonesian companies should
\nrestrain themselves from new commercial borrowing to help the
\nnation's total debt stay below the psychological barrier of $100
\nbillion. Otherwise, it could affect the country's balance of
\npayments and its credibility.<\/p>\n
Saleh also dismissed rumors saying that $20 billion of the aid
\npledged by the country's donors has not been disbursed. \"Although
\nI don't know the exact amount I don't think it is that much,\"
\nSaleh said, adding that the loans are given out in several phases
\naccording to the schedules of projects.<\/p>\n
Meanwhile, Coordinating Minister for Trade and Industry
\nHartarto said that they discussed several points in yesterday's
\nmeeting including measures to maintain economic stability by
\ncontrolling inflation and improving the development of the
\nindustry, tourism, investment and agriculture sectors. (yns)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ris-foreign-debt-still-at-safe-level-saleh-affif-1447893297",
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"sponsor": "Okusi Associates",
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