Lawmaker Warns of Problem Caused By Growing Foreign Debts

Minggu, 23 Juli 2017 18:45 WIB

Anwar Pua Geno, Speaker of the East Nusa Tenggara regional legislative assembly (DPRD)

"Don`t take lightly with the problem of foreign debt burden with irresponsible arguments about the people welfare," Anwar Pua Geno said.

Kupang, E Nusa Tenggara (Antara NTT) - Speaker of the East Nusa Tenggara regional legislative assembly (DPRD) Anwar Pua Geno warned the government not to trifle with swelling foreign debts.

Anwar said apart from being not productive, the debts would be a burden for the coming generation .

"Don`t take lightly with the problem of foreign debt burden with irresponsible arguments about the people welfare," he said here on Saturday.

Former chairman of the Association of Islamic Students (HMI) of Kupamg was commenting on the country`s swelling foreign debts reaching Rp3,706.52 trillion by June, 2017 or an increase of Rp34.19 trillion from May, 2017.

However, he agreed with the government that the position of the country`s foreign debts is still safe.

Finance Minister Sri Mulyani Indrawati said in a plenary session of the House of Representatives said the government succeeded in keeping in a safe the position the country`s foreign debt in 2016.

Sri Mulyani said the government is careful in using more foreign debts and keep the state budget deficit under control.

The government, therefore, would continue to push for greater efforts to increase tax and non tax income and improve efficiency in state spending especially non productive spending.

Anwar Pua Geno acknowledged that the government has continued to take into account fiscal sustainability, and capability to service the debts.

He said in 2016, the position of the country`s foreign debts was safe with a ratio of 28 percent to the country`s Gross Domestic Product (GDP).

He said the country`s foreign debt ratio to GDP is still lower than those of other ASEAN countries. The country`s foreign debts totaled Rp3,466.96 trillion by the end of 2016.

Based on data from the finance ministry, Indonesia`s foreign debt ratio to its GDP was even lower than those of a number of G20 countries and a number of ASEAN. Malaysian foreign debt ratio to GDP was 53.2 percent and Thai foreign debt ratio was 44.4 percent.

Indonesia, however, still has larger poverty rate . According to the Central Bureau of Statistics the country has 27.77 million people or 10.64 percent of the country`s population living below the poverty line.

"This showed that the increase in the country`s foreign debts did not contribute to the program to eliminate poverty," Anwar said.

The provincial office of BPS said by January, 2017 , the number of people living below the poverty line increased 160 to 1,150,080 or 22.19 percent of the population from 1,149,920 or 22.01 percent of the total population of 5.3 million in March 2016.

"The number of people living below the poverty line in East Nusa Tenggara grew 160 in September, 2016 from 1,149,920 or 22.19 percent of the population in March, 2016," he said.

The growing poverty is more obvious in urban areas rising 460 from 112,020 to 112,480 in the last six months.

The figures show that the increase in foreign debt that reached Rp3,706.52 trillion by June 2017 did not help improve the people`s welfare.

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