The World Bank frees Segunung from Indonesia’s foreign debt, the Ministry of Finance said

BigBussiness – The World Bank has published a report entitled International Debt Statistics (IDS) 2021 October 12, 2020.

In the report, the World Bank said that Indonesia was included in the list of 10 small and medium-sized income countries with the largest foreign debt in the world.

From data from the World Bank, over the past year or 2019, Indonesia’s external debt reached $ 402.08 billion, or around $ 5910 trillion.

This figure is an increase of 5.92 percent from the position of USD 379.58 billion or IDR 5579 trillion (assuming an exchange rate of IDR 14 700 per US dollar) in 2018.

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The Ministry of Finance immediately rushed to clarify this. In a press release on Wednesday (14/10/2020), the government said that the World Bank’s report contains data and analyzes of the government debt’s position in the world.

The Ministry of Finance admits that the comparison of several small and middle-income countries with the largest foreign debt (ULN), including Indonesia, in part of the World Bank’s report.

“However, the comparative report referred to does not include developed countries, but countries with small and middle-income categories, so it appears that Indonesia’s position is included in the 10 countries with the largest external debt,” said the Ministry of Finance.

Not only that, the ministry led by Sri Mulyani Indrawati said the structure of Indonesia’s foreign debt was still dominated by long-term external debt which accounted for 88.8 per cent of total foreign debt.

“The government manages debt with the principles of prudence (caution) and measurable (responsible),” he said.

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Indonesia is among the top 10 countries with the largest foreign debt in the world

In this comparison, it can be seen that Indonesia’s debt among these countries is considered large because Indonesia’s economy is included in the G-20 group of countries in 16th position.

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