Jakarta, CNBC Indonesia – It is recorded that there are 4 creditor countries that have pledged to cancel Indonesia’s debt. The four countries that have canceled Indonesia’s debt include Germany, Italy, Australia and the United States.
Director-General of Finance and Risk Management at the Finance Ministry Luky Alfirman said Indonesia’s debt relief was being done through a debt swap programme.
Luke revealed that the amount of debt forgiven has reached $303 million. Meanwhile, $261 million was made with 175 projects.
“If we look at it, so far the debt conversion program that has been carried out is the equivalent of $334 million in total,” Lukey said in a media briefing: Update on welfare distribution and financing at the Ministry of Finance some time ago.
Luky explained that debt swaps were carried out with German creditors for different projects such as education, education, global health funds. Thus, the joint Italian project includes housing and settlements.
Meanwhile with Australia on health or health debt to health. As well as with the United States, namely the debt to tropical forests.
According to him, debt swapping is two-way. If the race wins, he admits he’s very open about it.
“Sometimes we offer, but it also depends on what the offer is like,” concluded Lukey.
Of note, Indonesia’s external debt (ULN) as of July 2022 has shrunk again. As of the end of July 2022, Indonesia’s external debt was recorded at US$400.4 billion or IDR 5,965.96 trillion (IDR 14,900/USD).
This realization was down from the previous month’s external debt position by US$403.6 billion. On a year-over-year basis, July 2022 external debt contracted by 4.1% (yoy), more than the previous month’s contraction of 3.2% (yoy).
BI noted that the government’s external debt in July 2022 continued its downward trend. The government’s external debt position in July 2022 was US$185.6 billion, lower than the previous month’s position of US$187.3 billion.
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(RCI/dhf)
