"Globally, in aggregate, it is still safe. But individually perhaps there might be problems here and there," Darmin Nasution said.Jakarta (ANTARA News) - Bank Indonesia Governor Darmin Nasution said that the country`s private debt level is still safe.
"Globally, in aggregate, it is still safe. But individually perhaps there might be problems here and there," he said here on Friday.
So, as there has not been any conclusion with regard to the private debt ratio the government has not yet measured the possible risks, the central bank governor said.
Darmin admitted that the pace of private debt growth has been relatively fast. In 2012 the private debt level has even equalized that of the government, he added.
"We are measuring it from various aspects. There are a lot of indicators that could be used to show if the ratio is still safe or not," he explained.
Although the ratio of private debts is still safe the governor said that the government would see if there were possible risks there.
"If the decision later states about possible risks we certainly would take actions," he said.
Darmin said that the issue had been discussed at the Financial System Stability Coordination Forum (FKSSK) but the forum had only discussed it and had not yet looked into it thoroughly.
"It has indeed been discussed but we have not come to a conclusion that an action has to be taken," he said.
By October 2012 the country`s private debts reached US$123.27 billion which was higher than the public debts which were recorded at US$120.64 billion.
The ratio of the private debts has risen from around 26.4 percent in 2011 to 27.3 percent of the Gross Domestic Product in 2012. (*)
Editor: Heru Purwanto
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