TEMPO.CO, Jakarta - Indonesia's public debt to gross domestic product (GDP) ratio stood at 33.05 percent at the end of 2015, according to the World Bank. The number places Indonesia seventh in the Southeast Asian region, while Singapore sits on top of the list, followed by Malaysia.
Grace Retnowati, country manager of Indonesia MicroSave, said that Indonesian banks' savings and credit services have not reached the entire population. As a result, the ratio of the public's bank loans to the GDP remains below its neighboring ASEAN countries.
"The lack of branch offices, complicated administrative process, and a conventional credit scoring system are the main factors," she said in a media on Wednesday, October 12, Bisnis Indonesia reported.
Indonesia's 33.05 percent public debt to GDP ratio in 2015 is far below Singapore's 129.75 percent, Malaysia's 125.19 percent, Thailand's 117.23 percent, and Vietnam's 111.92 percent. Indonesia even falls behind Cambodia and the Philippines whose ratios are 62.95 percent and 41.88 percent.
Meanwhile, Indonesia's public savings to GDP ratio is the third in ASEAN with 31.03 percent, behind Singapore's 46.07 percent and the Philippines 44.89 percent.