RI's foreign debt soars to $138 billion
JAKARTA (JP): Indonesia's foreign obligations rose by 4 percent to US$138 billion as of the end of March, up from $131.7 billion in February, the central bank reported yesterday.
The rise was caused by a $6.8 billion increase in non-bank private sector overseas debt which came about as a result of more companies reporting their foreign borrowings to Bank Indonesia (BI), it said in a statement.
BI said that the country's total overseas obligations were comprised of $54.4 billion in long-term government debt and $83.6 billion in debt belonging to the private sector and state-owned companies, including some $6.2 billion in the form of commercial paper.
Short-term obligations made up $14.9 billion of the total foreign debt, of which $5 billion was in the form of commercial paper, it added.
BI also said that the foreign obligations of banks and the private sector including state-owned companies in the form of commercial paper dropped by $0.9 billion and $0.4 billion respectively over the same period.
Noted economist Mohammad Sadli said yesterday that the country's external debt was much larger than the country's export capacity, which was less than $55 billion per annum.
He said that the huge foreign debt burden would make Indonesia more dependent on foreign aid to lift it out of the economic crisis.
"As a consequence, we will have to accept the total integration of our economy into the global market," he was quoted by Antara as saying.
He added that Indonesia would also be under the "treatment" of the International Monetary Fund and the World Bank for more than five years, meaning that the country would have to embrace the international agencies' liberal economic paradigm.
The IMF, World Bank and other donor institutions have pledged to provide a total of $43 billion in loans to Indonesia to help finance the country's three year program of economic reform. (rei)
Table: Indonesia external debt in million US$ (As of March 31, 1998)
Total external debt 138,018
I. Public Sector 65,564
A. Government 54,388
Of which IMF credit $3.0 billion
B. State-owned enterprises 11,176
1. State banks 5,607
i. Bank credit 5,024
ii. Domestic CP/MTN/FRN/CD/PN
owned by non residents 583
2. Non bank enterprises 5,569
i. Bank credit 3,842
ii. Domestic CP/MTN/FRN/CD/PN
owned by non residents 1,727
II. Private sector 72,454
1. Private banks 7,996
i. Bank credit 7,802
a. Foreign owned banks 414
b. Joint venture banks 4,302
c. Domestically owned banks 3,086
ii. Domestic CP/MTN/FRN/CD/PN
owned by non residents 194
2. Non-bank corporations 64,458
i. Bank credit 60,760
a. Foreign investment (PMA) 28,999
b. Domestic investment (PMDN)
and non-PMDN 31,761
ii. Domestic CP/MTN/FRN/CD/PN owned
by non residents 3,696
Source: Bank Indonesia
- Government debt includes US$229 million SBI owned by non residents
- Exchange rate = Rp 8,325/US$
- CP: commercial paper
- MTN: medium term notes
- FRN: floating rate notes
- CD: certificate of deposit
- PN: promissory notes