Prepare to Beg at the Paris Club

Indonesia's debts have already reached a dangerous level. If we really want to be debt-free, we should begin now to avoid new debts. But, at the CGI meeting, only the amount of the debt was reduced. There were no other breakthroughs.

November 13, 2001

The meeting of the Consultative Group on Indonesia (CGI) ended on Thursday last week. This club of creditor countries for Indonesia has already agreed to a new loan of up to US$3.14 billion, the equivalent of Rp31.4 trillion at the exchange rate of Rp10,000 to the US dollar. If this loan is meant to cover the deficit in next year's budgetoften referred to as digging a hole to cover another holethen the amount of this new debt should not be too wor...

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