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View all search resultsTo finance the economy, Indonesia has been experiencing a shortage of funds. The classic problem is that the balance of domestic savings is never enough to meet development financing needs. So the debt is needed to plug the deficit.
Finance Minister Sri Mulyani Indrawati has said that the International Monetary Fund's (IMF) call for governments around the world to reduce foreign debt was irrelevant to Indonesia, because the country’s debt-to-gross domestic product (GDP) ratio was low.
The strengthening rupiah in November led to an increase in Indonesia’s external debt, Bank Indonesia data has revealed. Meanwhile, the private sector also banked on the favorable borrowing conditions to seek funding from overseas, analysts have said.
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