REPUBLIKA.CO.ID, JAKARTA -- Economist Ichsanuddin Noorsy said Indonesia foreign debt, especially from private sector, need to be aware. If it could not be controlled, it can cause economic fluctuations.

"Foreign debts from private are already vulnerable because of high market risk," said Ichsanuddin to Republika, Monday (7/9).

He explained that the private debt were vulnerable because most of the debts were in US dollars and Singapore dollars. The high market risk was due to foreign currency such as the US dollar continued to strengthen.

"The market risk can be seen from the exchange rate and interest rates," he added.

Moreover, there are still many companies that have not been hedging. This condition will cause companies that do not have a reception in the form of US dollars, be burdened with depreciation of rupiah.

Based on data from Bank Indonesia, the Indonesia foreign debts per second quarter of 2015 reached 304.3 billion US dollars. The debts were dominated by private sector amounted to 169.7 billion US dollars or 55.8 percent of total external debt. While, external debt of public sector recorded at 134.6 billion US dollars or 44.2 percent of total external debt.

Singapore became the largest lender country to the private sector. It was amounted to 59.1 billion US dollars. Ichsanuddin said, Singapore was deliberately give massive loan to Indonesia.

"Singapore wants to grip private firms in Indonesia," he said.

Ikuti Whatsapp Channel Republika