ID :
66280
Wed, 06/17/2009 - 20:47
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https://www.oananews.org//node/66280
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RI MUST REDUCE ITS FOREIGN DEBT BURDEN : OBSERVER
Jakarta, June 16 (ANTARA) - Economic observer of the University of Indonesia Faisal Basri said Indonesia must be able to manage and reduce its external debts in order to reduce its financial burden.
"The government can reduce its debts by expanding its tax-resource base and be efficient in its expenditures," Faisal Basri said.
He said that the government had been able to reduce the ratio of its debts against its gross domestic products (GDP) to 32 percent, which happened to swell during the monetary crisis in 1998.
Faisal said that it proved that the government was able to manage its debts but it must also be able to reduce their nominal values.
In the current economic fluctuations, the receipt of a country is declining with its expenditure is increasing. "In this case, debts are needed because it is impossible to lower civil servants' salaries," he said.
However, Indonesia's economy is relatively more stable so that there is no need for it to borrow more money and then be trapped by loans. "Economy still can be said stable as long as the economic activities remain productive," he added.
At present, Indonesia's stand-by loans up to now have reached US$5.5 billion dollars. About US$2 billion of the stand-by loans came from the World Bank, US$1.5 billion from Japan, US$1 billion dollars from Australia and US$1 billion from the Asian Development Bank (ADB).
In the meantime, economic observer Aviliani said on Monday that the government should explain transparently the use of external debts so that it would not create pros and cons among the public.
"In the past the use of foreign loans was clearly outlined but now after the government issued the ORI (government bonds) funds, the use of loans was not clear," Aviliani said here on Monday.
She said that the government should be bold in explaining the public the posts in the state budget which experienced a deficit so that they would understand if additional debt was needed to cover the deficit.***2***
"The government can reduce its debts by expanding its tax-resource base and be efficient in its expenditures," Faisal Basri said.
He said that the government had been able to reduce the ratio of its debts against its gross domestic products (GDP) to 32 percent, which happened to swell during the monetary crisis in 1998.
Faisal said that it proved that the government was able to manage its debts but it must also be able to reduce their nominal values.
In the current economic fluctuations, the receipt of a country is declining with its expenditure is increasing. "In this case, debts are needed because it is impossible to lower civil servants' salaries," he said.
However, Indonesia's economy is relatively more stable so that there is no need for it to borrow more money and then be trapped by loans. "Economy still can be said stable as long as the economic activities remain productive," he added.
At present, Indonesia's stand-by loans up to now have reached US$5.5 billion dollars. About US$2 billion of the stand-by loans came from the World Bank, US$1.5 billion from Japan, US$1 billion dollars from Australia and US$1 billion from the Asian Development Bank (ADB).
In the meantime, economic observer Aviliani said on Monday that the government should explain transparently the use of external debts so that it would not create pros and cons among the public.
"In the past the use of foreign loans was clearly outlined but now after the government issued the ORI (government bonds) funds, the use of loans was not clear," Aviliani said here on Monday.
She said that the government should be bold in explaining the public the posts in the state budget which experienced a deficit so that they would understand if additional debt was needed to cover the deficit.***2***
