ID :
63083
Thu, 05/28/2009 - 20:22
Auther :
Shortlink :
https://www.oananews.org//node/63083
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ECONOMIST URGES GOVT TO STOP SEEKING FOREIGN LOANS
Jakarta, Mya 28 (ANTARA) - Economic observer of Yogyakarta-based Gajah Mada University (UGM) Revrisond Baswir has called on the government not to seek new foreign loans.
"The government should stop seeking new external loans and instead do its best to reduce its external debt servicing burden," he said here on Thursday.
He said efforts to reduce the country's external debts could be made by applying various strategies such as asking the creditors to reschedule Indonesia's debts.
Revrisond Baswir said the debts had caused Indonesia's foreign exchange reserves to continue to deplete. With debts, the government was to pay the principals of its debts and their interest.
In the meantime, the borrowed funds never actually entered the country because the government's expenditures were made overseas.
He said that efforts to boost economic growth could be made without borrowing money from abroad. Indonesia had an abundance of natural wealth.
"The government should adopt a stern attitude to review its contracts with foreign countries which are exploiting the country's natural resources," he said.
In the meantime, Daeng Naja, an economic analyst and Mulawarman state university lecturer in East Kalimantan said recently that Indonesia's foreign debts should be transparently managed.
"I am a person who agrees that Indonesia needs foreign loans," he said.
Indonesia needed foreign loans for the implementation of its development programs. "We won't depend on other countries if we are a rich country and dominate the world economy. But we depend on other countries, and whether we like or not, we need foreign loans to carry out development programs," he said.
Indonesia's foreign debts were recorded at Rp1,667 trillion, which can be honey or poison, depending on how to manage it.
While the ratio of Indonesian debts against the gross domestic product showed a decline, the country's foreign debts had increased from Rp1,294.8 trillion in 2004 to Rp 1,667 trillion in 2009.
The total interest the government had to pay also rose from Rp62.5 trillion in 2004 to Rp101.7 trillion in 2009.***2***
"The government should stop seeking new external loans and instead do its best to reduce its external debt servicing burden," he said here on Thursday.
He said efforts to reduce the country's external debts could be made by applying various strategies such as asking the creditors to reschedule Indonesia's debts.
Revrisond Baswir said the debts had caused Indonesia's foreign exchange reserves to continue to deplete. With debts, the government was to pay the principals of its debts and their interest.
In the meantime, the borrowed funds never actually entered the country because the government's expenditures were made overseas.
He said that efforts to boost economic growth could be made without borrowing money from abroad. Indonesia had an abundance of natural wealth.
"The government should adopt a stern attitude to review its contracts with foreign countries which are exploiting the country's natural resources," he said.
In the meantime, Daeng Naja, an economic analyst and Mulawarman state university lecturer in East Kalimantan said recently that Indonesia's foreign debts should be transparently managed.
"I am a person who agrees that Indonesia needs foreign loans," he said.
Indonesia needed foreign loans for the implementation of its development programs. "We won't depend on other countries if we are a rich country and dominate the world economy. But we depend on other countries, and whether we like or not, we need foreign loans to carry out development programs," he said.
Indonesia's foreign debts were recorded at Rp1,667 trillion, which can be honey or poison, depending on how to manage it.
While the ratio of Indonesian debts against the gross domestic product showed a decline, the country's foreign debts had increased from Rp1,294.8 trillion in 2004 to Rp 1,667 trillion in 2009.
The total interest the government had to pay also rose from Rp62.5 trillion in 2004 to Rp101.7 trillion in 2009.***2***
