Debts managed with international standard of management: Jokowi

Jakarta (ANTARA News) - The government is managing its debts with international standard of management, President Joko Widodo said here on Wednesday.

The debt is used to improve the national productivity, the president said in state of the nation address presenting the draft state budget for 2018 and financial note in a plenary session of the House of Representatives.

The government has been strongly criticized for using large foreign debts to finance its ambitious infrastructure projects.

"In order to plug up budget deficit in 2018, the government would use domestic and foreign financing sources, in the form of loans or debts," the president said.

He said the government would managed the fund with great care and accountability in line with international standard of management.

He said the money would be used for productive activities to back up the national development program such as in the sectors of education and health, social protection, infrastructure and defense and security.

The government would keep the debt ratio to the Gross Domestic Product (PDB) in a safe level below the maximum limit allowed by the law on state finance, he said.

He ensured transparency and accountability in the debt fund management by minimizing risk against economic instability in the future.

Earlier Finance Minister Sri Mulyani said additional debts by the government would be used to finance development in various sectors that would improve the national productivity.

"Debts are a tactical investment to meet the countrys requirement. Investment for human, infrastructure to increase the mobility of the people and to expand the financial sector to have greater stamina," Sri Mulyani said at an informal discussion here.

The minister said additional debts in the period of 2015-2017 were used by the government, which is more aggressive in its program mainly in infrastructure, social protection and village funds.

The minister also assured governments critics that the debts funds would be well spent.

"The government will continue to be careful in managing debts with accountability based on the standards adopted by countries in the world," she said.

She said the government would keep the debt level that "they would not pose a threat to the economic stability and become a burden that we could not carry."

Source: Antara News

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