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Govt to Cut Back on Commercial Loans

9 December 2014 03:14 WIB

TEMPO.CO, Jakarta - The Indonesian government continues to encourage the use of cheaper multilateral and bilateral loans to fund infrastructure development. "As far as possible, we need to lessen the amount of commercial loans," said Coordinating Minister for Economic Affairs, Sofyan Djalil, yesterday.

Sofyan said the government is negotiating with the World Bank, who has offered loans with lower interest rates and longer tenor compared to loans from global bonds issuance.

Unfortunately, Sofyan did not say how much money the World Bank is ready to disburse.

Based on data from Bank Indonesia, Indonesia's foreign debt as of September 2014 has reached US$292.3 billion. 

JAYADI SUPRIADIN

Banking and FinanceMinistry of Finance


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