Sunday, January 24, 2010

Govt to reduce need for foreign loans: Vice Minister




Although there were indications Indonesia`s foreign debts would still increase because of a budget deficit, the government had n committed to lessen its need for foreign loans and encourage domestic financing through state debentures (SUN), Lukita said here Friday.

"Due to the state budget deficit foreign debts are expected to rise but in terms of ratio it will drop. In terms of foreign debt we are committed to reducing our foreign debt stock. We will proritize debts from state debentures issued at home or abroad although the majority will certainly be issued at home in the form of state debentures and shariah bonds," he said.

He said by reducing foreign debts in the budget financing the ratio of debts to gross domestic product was expected to drop quicker.

"In terms of ratio the foreign debts will drop faster as we have been committed to limit the debts," he said.

He said with the deficit to drop from 1.6 percent to 1.2 percent in 2014 it was expected the country`s debt ratio to the gross domestic product would drop drom around 30 percent in 2009 to 24 percent in 2014.

"So, every year it drops by one percent," he said.

He said the government expected a 5.5 percent growth in 2010 and up to seven percent in 2012 and "in 2014 the growth is expected to reach above seven percent."

He said the government would strive to return the source of growth to processing industries and agriculture which are expected to contribute an average 3.6 to 3.7 percent to growth.

With regard to inflation he said it was expected to reach around 5.o to 6.0 percent while the rate of poverty to drop to 8.0 to 10 percent and unemployment 5.0 to 6.0 percent in 2014, he said. (*)
Sources :
http://www.antara.co.id/en/news/1264205120/govt-to-reduce-need-for-foreign-loans-vice-minister
http://tempe.files.wordpress.com/2009/06/boediono1.jpeg

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