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)