Indonesia's foreign debt level not a concern: ADB

Indonesia's foreign debt level not a concern: ADB

JAKARTA (JP): President of the Asian Development Bank (ADB)
Mitsuo Sato said here yesterday Indonesia's foreign debt level
was not yet a concern and the bank would continue to provide
assistance to the country.

But Sato urged Indonesia to increase its domestic savings
level to reduce its dependence on foreign funds and finance its
development.

"Let me again stress that I don't have any concern about the
level of (Indonesia's) foreign debt," he told journalists after
meeting with President Soeharto.

Indonesia's overall foreign debt currently stands at more than
US$110 billion, half of which is owed by the public sector.

Sato said ADB had so far extended $13.3 billion in loans for
217 projects and $123.2 million in grants for 326 technical
assistance projects in Indonesia.

Sato, here on a few days of visit since Monday, said the
central theme facing this country in years to come was how to use
resources more efficiently, including capital resources, human
resources and infrastructure.

"In this context, I stressed the need for further development
of the financial sector, especially the long-term capital
market," Sato said.

He urged the Indonesian government to maintain sound
macroeconomic management to sustain a conducive environment for
investment.

"I told the President of the need to maintain sound
macroeconomic management to sustain and improve the environment
for investment," Sato said.

Indonesia's economic growth of 6.6 percent per annum between
1967 and 1995 was among the highest in the world and a
commendable one, Sato said.

"I believe that this structural transformation which is
ongoing in favor of urbanization and skill-intensive, value-added
activities should provide the basis for continued socioeconomic
progress into the 21st century," Sato said. (rid)