The government's debt

The government's debt

Indonesia is known to be very prudent in spending its foreign debt, i.e. it is mainly used to finance projects which will increase national productivity and enhance the quality of human resources. As a debtor, Indonesia is also known to be punctual in paying the installments of its debt.

According to the Minister of National Development Planning/Chairman of the National Development Planning Board, Ginandjar Kartasasmita, Indonesia's foreign debt, up to March 1994, is US$ 55 billion. The increase in the exchange rate of Yen against the dollar will at the same time increase the debt installment because 40 percent of the foreign debt is in Yen.

Indonesia still needs foreign aid because of internal and external conditions, the fluctuation of the oil price as a source of foreign exchange earnings and the decline of the percentage of the increase of non-oil export which has to face various constraints.

--Angkatan Bersenjata, Jakarta