In 1996, Asian economies experienced a financial crisis, causing currencies and stock markets in various countries to plummet. To safeguard their economies, crisis-stricken Asian nations, including Indonesia, were forced to borrow bailout funds from the International Monetary Fund (IMF). This resulted in a sharp increase in the debt ratios of several crisis-affected countries. However, after 20 years, Asia has transformed into one of the world's economic pillars and is better prepared for future crises.
According to Bloomberg data, almost all Asian countries have a lower ratio of external debt to Gross National Income (GNI) compared to the crisis 20 years ago. Only Malaysia and South Korea recorded an increase. Indonesia's debt ratio decreased by 37 percent, a significant drop from 58.3 percent in 1996. Meanwhile, Finance Minister Sri Mulyani Indrawati has stated that the government aims to maintain this year's debt ratio at 27-29 percent of GDP.
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