Jakarta (Antara Bali) - The Indonesian government has to pay attention to the ratio of its debt principle and interest service (DSR) which has reached 56.08 percent, an economist said.
Executive Director of the Center of Reform on Economy (COREC) Hendri Saparini said that Indonesia's DSR in the first quarter of 2015 was recorded at 56.08 percent.
The DSR of that level has exceeded the limit set by the International Monetary Fund (IMF) and categorically had reached the alarming level, Saparini said.
After all, she said, Indonesia's export performance this year was expected to be slow.
"The DSR which has exceeded 50 percent is a red mark as the IMF's normal level is 30 percent," she said.
She said that foreign investors would take into account the DSR as a risk if they wanted to make investment in Indonesia or if they wanted to provide loans to the country.
The increase in Indonesia's DSR will hamper the country to obtain financing, she added.
"Moreover, there is an upward trend in the increasing interest rates. The state budget financing will therefore become more and more expensive," she noted.
Therefore, Saparini suggested that the government should focus on improving its export performance. It should conduct intensive export product promotion and expand export markets.
Indonesia should also use existing cooperation with partner countries such as China in expanding new export markets.
"The government should optimize bilateral policies with China for example. It should take advantage of its political lobbyings," she said.
She said that based on the website of Bank Indonesia (the central bank, Indonesia's DSR in the first quarter was recorded at 56.08 percent, up from 51.6 percent in the fourth quarter in 2014. (WDY)
COPYRIGHT © ANTARA News Bali 2015
Executive Director of the Center of Reform on Economy (COREC) Hendri Saparini said that Indonesia's DSR in the first quarter of 2015 was recorded at 56.08 percent.
The DSR of that level has exceeded the limit set by the International Monetary Fund (IMF) and categorically had reached the alarming level, Saparini said.
After all, she said, Indonesia's export performance this year was expected to be slow.
"The DSR which has exceeded 50 percent is a red mark as the IMF's normal level is 30 percent," she said.
She said that foreign investors would take into account the DSR as a risk if they wanted to make investment in Indonesia or if they wanted to provide loans to the country.
The increase in Indonesia's DSR will hamper the country to obtain financing, she added.
"Moreover, there is an upward trend in the increasing interest rates. The state budget financing will therefore become more and more expensive," she noted.
Therefore, Saparini suggested that the government should focus on improving its export performance. It should conduct intensive export product promotion and expand export markets.
Indonesia should also use existing cooperation with partner countries such as China in expanding new export markets.
"The government should optimize bilateral policies with China for example. It should take advantage of its political lobbyings," she said.
She said that based on the website of Bank Indonesia (the central bank, Indonesia's DSR in the first quarter was recorded at 56.08 percent, up from 51.6 percent in the fourth quarter in 2014. (WDY)
Editor : I Gusti Bagus Widyantara
COPYRIGHT © ANTARA News Bali 2015