VIVAnews - The Rupiah's fall against the dollar is affecting Indonesia's foreign debt payments. The payment is higher because of the exchange rate margin.
“Losses because of exchange rates has been happening for the last three months. before that there was profit from the exchange rates. But we don't know the total (loss) yet,” Said Head of the Fiscal Policy Body of the Financial Department, Anggito Abimanyu, Jakarta, Thursday, 30 Nov.
Anggito added that the exchange rate loss on dollar-based debts are compensated because of the decrease on the exchange rate of dollars in the last nine months, assuming an exchange rate of Rp 9.100/US$
“Overall it's fine. But for the yen, the foreign debt payment has been quite large and the yen was corrected heavily,” he said. The Rupiah in the financial market keeps getting depreciated. Today, the dollar hit as high as Rp 12,450.
This will effect the 2008 State Budget Plan (APBN) as a whole. According to Anggito, APBN has been 78% executed. It is hoped that by the end of this year it would be at 90%. So the deficit is projected to be at 1.1%, or about Rp 51 trillion (approx. US$4.3 billion).
From the total state expenditure, State Departments are still at 68%. “But as a whole it's good, the DAU (General Funds Allocation) are on time. The important thing is spending on capital, goods, and social can reach 90%. That would be really good,” he said.
With spending at 90% already, Anggito is certain that the economic growth of 2008 will still be above 6%. “The Statistic Center Institute's (BPS) count is 6.1%, the department's (of finance) count is 6-6.1%. The next trimester will be a little bit below 6%. But on the whole, 2008 is still above 6%,” he said.
Even though the economy is facing a slowdown, Anggito said, the state's income has surpassed the target and since spending has already begun, it quickens the income. The government is sure there will be quite a surplus.
Translated by: Archie Ardian.
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