President wants lower foreign loans: Minister

National Development Planning Minister Armida Alisyahbana said that President Yudhoyono has ordered to continue to reduce on foreign loans.

“The President’s instruction was that foreign loans really have to be lower. The percentage of debt to the GDP in 2014 must be a maximum of 22 percent,” she said on Friday after a closed Cabinet meeting as quoted by kompas.com.

Indonesia’s debt-to-GDP ratio is projected to reach 30.2 percent by year’s end.

According to Armida, the President has also ordered that the country’s loan payments be bigger than the new loans. Proposed project loans must also be properly selected and granted only to those urgently needed.

“Project loan infrastructure may still be allowed if foreign funding is really necessary,” she added.

The Cabinet meeting, led by the President, was also attended by Vice President Boediono, Coordinating Economic Minister Hatta Rajasa and Finance Minister Agus Martowardojo.