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House Pegs Foreign, Domestic Loan Target

19 September 2014 15:34 WIB

TEMPO.CO, Jakarta – The House of Representatives' (DPR) Budget Committee has set the amount of foreign loans and domestic loans in the 2015 State Budget Draft. The value of foreign loan is raise from Rp13.4 trillion to Rp23.8 trillion. While the domestic loan target was lowered to Rp1.6 trillion.

Despite increasing the target, the government said there will still be control over foreign loans, such as by using the debt-to-GDP ratio, prioritizing domestic debt financing, and directing the use of debts for productive activities.

"Such as to issue project-based sukuks," Purwiyanto, daily manager of the Finance Ministry's Directorate General of Debt Management, said yesterday.

On Wednesday night, Bank Indonesia (BI) announced that the value of foreign debt at the end of July 2014 reached US$290.6 billion, US$5.7 billion higher from June's record.

"This is a relatively stable position at 10 percent, year-on-year," BI spokesman said through a press release yesterday. 

TRI ARTINING PUTRI | AISHA SHAIDRA



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