RI's foreign debt still at safe level: Saleh Affif
RI's foreign debt still at safe level: Saleh Affif
JAKARTA (JP): Indonesia's considerable offshore borrowing is
still at a safe level because it has soft terms with low interest
rates and long grace periods, a minister says.
Coordinating Minister for Economy and Finance Saleh Afiff told
reporters after a ministerial meeting yesterday Indonesia has
been relying on its official borrowing from the Consultative
Group on Indonesia, whose members annually pledge loans mostly
with favorable terms.
"The government also gets export credits with interest rates
lower than that on other commercial loans," Saleh said, adding
that the government has appointed a special team to control the
inflow and management of offshore commercial loans.
According to State Minister of National Development Planning/
Chairman of the National Development Planning Board (Bappenas)
Ginandjar Kartasasmita, Indonesia's total offshore borrowing as
of March stood at US$83.3 billion, of which $55 billion or 66
percent was borrowed by the government and the remainder by the
private sector.
He said 71.3 percent of government's debt, or $39.2 billion,
has soft terms with low interest rates and low maturity.
Sumitro Djojohadikusumo, a prominent economist, said on the
weekend that the government is managing foreign debt very well
and has used it for productive projects.
Blue book
Saleh explained that the use of foreign loans should be done
according to a blue book prepared by Bappenas. "The blue book
mentions priority projects and the use of loans should be in line
with it," Saleh said.
Saleh warned recently that Indonesian companies should
restrain themselves from new commercial borrowing to help the
nation's total debt stay below the psychological barrier of $100
billion. Otherwise, it could affect the country's balance of
payments and its credibility.
Saleh also dismissed rumors saying that $20 billion of the aid
pledged by the country's donors has not been disbursed. "Although
I don't know the exact amount I don't think it is that much,"
Saleh said, adding that the loans are given out in several phases
according to the schedules of projects.
Meanwhile, Coordinating Minister for Trade and Industry
Hartarto said that they discussed several points in yesterday's
meeting including measures to maintain economic stability by
controlling inflation and improving the development of the
industry, tourism, investment and agriculture sectors. (yns)