Indonesia's foreign debt

Indonesia's foreign debt

From Sinar Pagi

There is, indeed, cause for concern about the foreign debt to be faced by our children and grandchildren.

If I am not mistaken, our foreign debt has reached Rp 200 trillion -- 60 percent of which is the government's debt, with the remaining 40 percent belonging to the private sector.

In fact, the nation has been warned that the debt must be curbed.

Coordinating Minister for Economy and Finance Saleh Afiff once warned that Indonesia's debt had reached US$90 billion. This required the nation's serious attention because it was nearing the psychological boundary of $100 billion, which is usually used as a reference by the donor countries in extending new loans.

In other words, the donor countries' confidence in Indonesia will diminish as the total of its debts rises.

MAS SOEBANDI

Jakarta