ENGLISH FOR BUSSINESS

Made by:
1.Fatimah Binti Fauziah
2.Siti Nurjanah
3.Oky Nugroho

STIE PANDU MADANIA

BOGOR
2015

FOREIGN DEBT
THESIS
Developing country is a country that
is still very weak in development.
Economic growth is influenced by
many factors, one of it is a financial
income. And to meet the financial
needs , developing countries require
other sources. One of it is a foreign

ARGUMEN 1

Base on data research by Moch. Damar Jaya a

colleger

of

Faculty

of

Economics

Universitas Brawijaya on 1998-2012

and

Business

proove that

foreign debts have possitive impact and significant for

economic growth in a country for a long term.

oreign Debt 1998 - 2012

Source: Indonesian

GDP 1998 - 2012

Source : BPS

ARGUMENT 2

Foreign debt does not necessarily have a

negative impact if the government use it
appropriately. Foreign debt should not be
used for consumption but to make capital
development so it would not be directly
discharged but it will be the capital
development of the country.

ARGUMENT 3

Foreign debt is used to create the

program

will

increase

national

income through the GDP so it will

reduce
pooverty.

unemployment
Then

when

and
the

government income tax improve it

will be surplus. This will increase
the amount of production, it means
that a country's economic growth

ARGUMENT 4

Foreign debt can have a positive

impact

when

governments

use

it

effectively. Except that they need for

clear payment targets so as not to
burden

the

country

but

it

will

motivate countries to use it for the

priority program.

CONCLUSION
Base on data and arguments above we
can conclude that foreign debts can
increase economic growth if the policy
and management to relief that funds is
effectifly used in developing country.

Thankyo
u

Based on the above chart image can be known that the

development of Indonesia's foreign debt has fluctuated from 1998
to 2006 with an average value above $ 100 billion acquisition.
Indonesia's foreign debt position until the end of 2001 fell 7.4% to $
131.2 billion compared to the end of 2000. In 2005 the external
debt developments and the withdrawal of government and private
causes external debt position decreased. External debt position
decreased to $ 133.5 billion from $ 137 billion at the end of 2004.
The decline in external debt position occurred in the government
sector where the position decreased from
$ 80.7 billion to $ 74.9 billion. Meanwhile, the private external debt
position also declined from $ 52.9 billion in 2004 to $ 51.9. While
the position of foreign ownership in domestic securities also
increased from $ 3.4 billion to $ 6.6 billion. If seen its share, the
share of official debt is still dominant, with a share of 56%
(Indonesia Economic Report, 2005) .In the year 2007 until the year
2012 the development of Indonesia's foreign debt has increased
from year to year. In 2008 Indonesia's foreign debt reached $
155.08 billion, higher than the acquisition in 2007 which amounted
to $ 136.64 billion.

Based on the above chart one can note that the trend GDP growth in Indonesia from
1998 to 2012 continues megalami increase from year to year. In 1998 the rate of GDP
of Indonesia was recorded at 1317245.1 billion rupiah.Pada next period of acquisition of
Indonesia's GDP amounted to 1325352.1 billion rupiah, kemudiaan for subsequent
years of Indonesia's GDP experienced a progressive increase in berkelanjutan.Pada
2003 alone the acquisition of Indonesia's GDP amounted to 1577171.3. After
experiencing a very deep contraction in 1998 which has brought the Indonesian
economy back a few years back, the Gross Domestic Product (GDP) by the end of 2003
showed a positive development and significantly increasing. This is reflected in
increased economic growth of -13.1% in 1998 to 4.1% in 2003. Acquisition of GDP in
2006 showed the number of 1847126.7. Amid declining consumer purchasing power
after fuel price hike in October 2005, the preservation of macroeconomic stability has
opened up space for the economy to grow at 5.5% (yoy), although slightly lower than
the previous year by 5.7% (yoy). In 2007, Indonesia began membaik.Inflasi economic
conditions and the exchange rate was already showing fairly stable figures.
Macroeconomic stability sustain high economic growth in 2007 is 6.3%. This happens
because it is supported by growth in domestic demand, both private consumption and
investment (Indonesian Economic Report, 2007) .In the year 2012 Indonesia's economy
has improved baik.Dimana acquisition of GDP by constant prices reached
2618139.2.Kinerja Indonesian economy in 2012 is quite encouraging amid a weakening
world economy and overcome the economic ketidakpastian.Pertumbuhan can be
maintained at a sufficiently high level, namely 6.2%, with inflation controlled at a low
level (4.3%) so that the inflation target in the range of 4.5 1%. In the midst of
declining export performance, economic growth is more sustained by domestic demand
remains kuat.Hal is supported by macro-economic conditions and financial system that
is conducive to allowing the household sector and the business sector perform
economic activities with more good.In addition, strong demand Domestic amid weaker