We are preparing anticipatory steps if the United States and Europe are imposing high rate interest rates to collect funds. This can have implications for the world financial market.
Jakarta (ANTARA News) - Indonesia`s debts have been managed well and its economic fundamentals are solid so its economy will not be affected by the crisis in the United States and Europe, Finance Minister Agus Martowardojo said.

"I believe that the economic turmoil in the United States and Europe is caused by the fact that those countries have a big amount of debts," the finance minister said here on Tuesday.

He said that Indonesia in the last ten years had been able to manage its debts, particularly in maintaining its normal debt-to-GDP ratio.

The minister said that Indonesia in the last ten years had been able to reduce its debt-to-GDP ratio from 80 percent to 26 percent in 2011.

He said that countries which had experienced a slow economic growth like the United States had a debt-to-GDP ratio reaching 100 percent,followed by Greece (147.3 percent), Portuguese (103.1 percent), Ireland (102.4 percent), Italy (124.8 percent) and Japan 227.8).

"We have been consistent in managing the soundness of our debt-to-GDP rate where 10 years ago it was 80 percent. Now it is 26 percent, meaning that it has declined. In other countries the ratio increases as high as 100 percent, even in Japan it rises to 200 percent," the minister said.

He said that the performance of Indonesia`s capital market, banking and fiscal policies was good in term of the economic fundamentals. This indicated that Indonesia`s economy is stable.

The minister said that Indonesia also was preparing anticipatory steps in the face of the possibility of the world financial market not showing indications of improving.

"We are preparing anticipatory steps if the United States and Europe are imposing high rate interest rates to collect funds. This can have implications for the world financial market," the minister said.

(A014) (B003).









(T.SYS/A/A014/B003) 10-08-2011 22:38:28

Editor: Ella Syafputri
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