The Indonesian government`s total debt reached US$200.50 billion or around Rp1,723.90 trillion until June, 2011, according to temporary data of the Directorate General of Debt Management.
Jakarta (ANTARA News) - Finance Minister Agus Martowardojo said Indonesia`s debt remained under control and was recorded at only 26 percent of its GDP (Gross Demestic Product).

"I believe the crisis faced by the US and Europe originated from their huge debt. We, Indonesia, have been able to keep our debt- to-GDP ratio over the past ten years under tight control," he said here on Thursday.

The Indonesian government`s total debt reached US$200.50 billion or around Rp1,723.90 trillion until June, 2011, according to temporary data of the Directorate General of Debt Management.

It had risen to US$186.50 billion at the end of 2010 from US$169.22 billion at the end of 2009 and US$149.47 billion at the end of 2008.

The debt consisted of foreign debt totalling US$68.45 billion and domestic debt totalling US$0.06 billion.

The foreign debt includes bilateral loans worth US$42.45 billion, multilateral loans worth US$22.87 billion, commercial loans US$3.07 billion and suppliers` loans US$0.06 billion.

Total government securities reach US$132.01 billion consisting of US$20.53 billion in foreign denominations and US$111.48 billion in the rupiah denomination.

Minister Agus said Indonesia has been consistent in controlling its debt and has been able to reduce it from 80 percent to the GDP ten years ago to 26 percent this year.

The countries that are currently suffering a slow economic recovery and are affected by the crisis like in the US have a debt to GDP ratio of up to 100 percent such as Greece 147.3 percent, Portugal 103.1 percent, Ireland 102.4 percent, Italy 124.8 percent and Japan 227.4 percent.

The minister said Indonesia`s economic fundamentals were good so that the current crisis in the US and Europe would not affect the country`s domestic economy significantly.

He said the capital market and banks continued to perform well while fiscal policies were fundamentally still good showing that the economy remains stable.

He however said the government still needs to prepare anticipatory measures in case the world financial market would not show signs of improving immediately especially following sharp correction of share prices in the regional exchanges.

"We are indeed anticipating if a downgrade in debt rating occurs in the US or Europe and those countries wish to raise funds certainly the interest rate will rise and will have implications on the world market," he said.(*)

Editor: Heru Purwanto
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