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