Whither our foreign debt?<\/p>\n
The one issue which is often mentioned in relation to foreign
\ndebt is our inability to absorb the funds optimally. This is
\ncaused by a discrepancy between planning and execution. And for
\nthis the government has to pay a US$200-million commitment fee a
\nyear.<\/p>\n
In the case of the foreign debt of the private sector,
\nhowever, the condition is quite different. In this case, the
\nmaturity date is shorter and the interest rate is higher. The
\nprivate sector's total debts now account for 40 percent of
\nIndonesia's total foreign debt of $93 billion.<\/p>\n
Placement of funds is a crucial issue in the case of foreign
\ndebt in the private sector. If it happens to be put into a
\nlucrative business, it is fine. But if it is not, or even worse,
\nif the loans go bad, there are bound to be problems.<\/p>\n
Thus far, the foreign debt has never become a national
\nconcern, thanks to prudent handling. Nevertheless, efforts to
\nboost exports coupled with an enforcement of an austerity policy
\nare very important. This should apply especially to the middle
\nclass people. They should not let themselves become the victims
\nof consumerism.<\/p>\n
-- Bisnis Indonesia, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/whither-our-foreign-debt-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }