"The Indonesian economic fundamentals are quite strong."
Jakarta (ANTARA News) - Vice finance minister Anny Ratnawati said Indonesia`s economic conditions remain safe and interesting for foreign investment.

"The Indonesian economic fundamentals are quite strong, so the country remains attractive for foreign investments. We believe that with the current investment grade we will continue to be seen as an attractive destination for investment, both direct and portfolio investments," she said here on Saturday.

She added that she believed no sudden reversal of capital would occur, in view of the strong conditions.

Further, she said current efforts by the government to boost spending would support the country`s economic fundamentals, especially economic growth.

Nearing the second quarter, spending has doubled from the same period last year, she said.

Regarding debt, she noted the country`s debt level was still below a prudent level, although the country`s total debt had reached Rp1,903.21 trillion by April 2012.

"The debt ratio is still quite low. The average ratio in developing countries is 39 percent of the GDP, while in developed countries it is 109 percent," she said.

Indonesia`s debt ratio, meanwhile, is still at 26.3 percent of the GDP. "Although the US dollar is appreciating and there is a European and global crisis, Indonesia right now is still stable and safe," she said.

Certainly the government would be more careful in accumulating new debt, she remarked.

She added that the government plans to take on debts that incur a low interest, as the financing must be managed well. In the future, Indonesia will still accrue debt, but only that which has a low interest rate, she said.

Editor: Priyambodo RH
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