World Bank2013-08-192013-08-192000-05-22https://hdl.handle.net/10986/15198The Asian economic crisis has left Indonesia's Government deeply in debt. Government debt has increased from 23 percent of GDP before the crisis to about 83 percent of GDP in early 2000. Nearly three quarters of this increase is domestic debt to pay for bank restructuring. Though very large, the government's debt is manageable. Actions to rebuild investor confidence, keep real interest rates down, and renew growth are necessary. Moreover, actions are also needed in the following areas: 1) generating significant primary fiscal surpluses; 2) containing off-budget losses and counteracting fiscal risks; 3) aggressively selling government assets to reduce government debt; 4) rescheduling existing debt under international rules and seeking the best possible terms for new borrowing; 5) building capacity to manage debt well; and 6) establishing an effective domestic bond market. The report concludes that Indonesia can overcome its government debt burden with renewed growth and prudent fiscal management. But this will not be easily or quickly achieved. Sustained fiscal surpluses and asset sales will be important. So will actions to avoid additional new government debt and strengthen debt management capacity.en-USCC BY 3.0 IGOACCOUNTABILITYADBASSET MANAGEMENTASSET MANAGEMENT COMPANIESASSET SALESASSETSBANKBANK INDONESIABANK RECAPITALIZATIONBANK RESTRUCTURINGBANKING RESTRUCTURINGBANKING SECTORBOND MARKETBONDSBOOK VALUEBORROWINGBUDGET PROCESSCAPACITY BUILDINGCAPITAL ADEQUACYCDCOLLUSIONCREDIT PROGRAMSCREDIT RATINGCREDITORCURRENCY RISKCURRENT EXPENDITURESDEBT BURDENDEBT COLLECTIONDEBT INTERESTDEBT LEVELDEBT MANAGEMENTDEBT MARKETSDEBT OUTSTANDINGDEBT REDUCTIONDEBT RESTRUCTURINGDEBT SERVICEDEBT SERVICE BURDENDEBT SERVICE PAYMENTSDEBT SERVICINGDEBT SUSTAINABILITYDEBTSDEFAULT RISKDEREGULATIONDEVELOPMENT ASSISTANCEDIVIDENDSDOMESTIC DEBTECONOMIC COOPERATIONECONOMIC STABILITYEFFECTIVE STRATEGYELECTRICITYEXCHANGE RATEEXTERNAL DEBTEXTERNAL PUBLIC DEBTFACE VALUEFINANCIAL CRISISFINANCIAL INSTITUTIONSFISCAL DECENTRALIZATIONFISCAL MANAGEMENTFISCAL POLICIESFISCAL SURPLUSFISCAL YEARFOREIGN BORROWINGFOREIGN DEBTGDPGOVERNMENT DEBTGOVERNMENT EXPENDITURESGOVERNMENT OBLIGATIONSGROSS DOMESTIC PRODUCTGROWTHINDONESIAINFLATIONINFLATION RATEINSURANCEINTEREST RATEINTEREST RATESINTERNATIONAL BONDSLIQUIDITYMACROECONOMIC MANAGEMENTMARKET VALUEMATURITIESMONETARY POLICYNATIONAL GOVERNMENTSNET WORTHNOMINAL INTEREST RATEOILOPERATIONAL RISKSPENSIONSPOLICIESPRESENT VALUEPRICE CHANGESPRIVATE SECTORPRIVATIZATIONPUBLIC DEBTPUBLIC ENTERPRISESPUBLIC EXPENDITURESPUBLIC INVESTMENTPUBLIC RESOURCESPUBLIC SECTORPUBLIC SPENDINGREAL INTEREST RATEREPAYMENTSAVINGSSECURITIESSOLVENCYSOVEREIGN DEBTSTATE BANKSSTATE ENTERPRISESSTATE OWNED ENTERPRISESTAXTAX EXEMPTIONSTAX REVENUETAX REVENUESTECHNICAL ASSISTANCETRANSPARENCY PUBLIC DEBTSECONOMIC CRISISFISCAL SURPLUSCONCESSIONAL LOANCAPACITY BUILDINGGOVERNMENT BONDSDEBT SERVICE BURDENINVESTOR CONFIDENCEINTEREST RATESWorld Bank10.1596/15198