The government has been advised to reduce its dependency on foreign debt in trying to cover the deficit in the state budget. Just to cover interest, the government had to allocate Rp 221 trillion (US$16,53 million) in 2017, said the Center for Reform on Economics (CORE Indonesia) in a statement on Wednesday. CORE Indonesia records that in the last three years, the interest on debt increased by 18 percent on average, compared to the period between 2009 and 2014, when interest on debt only increased 7 percent in average.
Govt told to reduce its dependency on debt
The government has been advised to reduce its dependency on foreign debt in trying to cover the deficit in the state budget. Just to cover interest, the government had to allocate Rp 221 trillion (US$16,53 million) in 2017, said the Center for Reform on Economics (CORE Indonesia) in a statement on Wednesday. CORE Indonesia records that in the last three years, the interest on debt increased by 18 percent on average, compared to the period between 2009 and 2014, when interest on debt only increased 7 percent in average.