Indonesian Foreign Debt

Headed for A Crisis or Financing Sustainable Growth

Datos Bibliográficos

ID8415752
AutoresSteven Radelet (autor de correspondencia)
Año1995
Volumen31
Número3
Páginas39-72
Fecha de publicación1995-12-01
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaBulletin of Indonesian Economic Studies (JOURNAL)
Identificadores de la revistaISSN: 0007-4918 • E-ISSN: 1472-7234
EditorialInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00074919512331336825
OpenAlexW1995370512
IdiomaEN
Citas recibidas7
Referencias citadas6

This paper examines the build-up in Indonesia's foreign debt between 1981 and 1993, and explores the potential for a debt crisis during Repelita VI. It concludes that Indonesia is not headed toward a crisis in the immediate future- Borrowed funds have generally financed productive investments, contributing to rapid growth in GDP and exports since the late 1980s. If recent trends continue, debt should ease gradually; if not, the economy could withstand a substantial balance of payments shock, at least for a while. A debt servicing problem, although unlikely, is conceivable by the end of the decade. Short-term debt is growing rapidly, non-oil export growth has slowed, and debt service remains high. Appropriate government actions to reduce the potential for a crisis include further deregulation to support growth in non-oil exports, discouraging implicit government guarantees for private sector projects, and reducing government exposure to yen-denominated debt

Balance of payments · Debt · Debt crisis · Debt levels and flows · Debt overhang · Debt service coverage ratio · Debt-to-GDP ratio · Deregulation · Economic policy · Economics · External debt · Financial system · Government (linguistics) · Internal debt · International economics · Macroeconomics · Monetary economics · Shock (circulatory) · Asian Studies and History · Finance · Global Financial Crisis and Policies · Monetary Policy and Economic Impact