We can't domestic loans<\/p>\n
We were surely startled when reading a scenario made by the
\nIndonesian Bank Restructuring Agency (IBRA) concerning the burden
\nof recapitalization bonds that we have to shoulder. Based on the
\nworst scenario, the total liabilities derived from these bonds
\nthat we have to pay until 2041 can reach Rp7,000 trillion.<\/p>\n
The first thing that caught us by surprise was certainly the
\nfigure Rp7,000 trillion. We can hardly imagine how much that
\nRp7,000 trillion is.<\/p>\n
Second, can we fulfill the obligation?<\/p>\n
The bond problem is different from our debts to the Paris
\nClub, the World Bank or the International Monetary Fund as it is
\nrelated to on-shore loans.<\/p>\n
If we owe to other countries, such debts can be negotiated,
\nrestructured, written off, or, under forced circumstances,
\nperhaps these debts will not be repaid. On-shore loans are
\ndifferent, though. The government has to meet its obligation as
\nthis can influence its credibility, or, and even more
\nfrighteningly, disrupt the national economy as a whole.<\/p>\n
We can go out of the difficulties in paying on-shore loans and
\ncarry on the development if we draft the Law on State Bonds.<\/p>\n
Yet, it is just the first step. The next one, which is of no
\nless importance, is to build the people's confidence.<\/p>\n
It is only with the people's trust that we all will have no
\ndoubt to purchase government bonds. It is these bonds that will
\nthen be used to pay on-shore loans and carry on the development
\nin this country.<\/p>\n
-- Kompas, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/we-cant-domestic-loans-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }