RI's foreign debt soars to $138 billion

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