China is the third largest creditor to Indonesia after Singapore and Japan. Indonesia's External Debt Statistics (SULNI) recorded Indonesia's external debt from the Chinese government in October as US$14,323 million. Singapore is the largest creditor to Indonesia, reaching US$54,061 million. Japan follows in second place with US$32,907 million.
Foreign debt serves as a means to boost the national economy. These foreign loans are used for infrastructure development, covering budget shortfalls, development capital, and bilateral cooperation between countries. However, foreign debt will also increase the burden on the state budget (APBN).
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