Committee for the Abolition of Illegitimate Debt

The Third National Meeting of Anti Debt Coalition (Koalisi Anti Utang) held in Yogyakarta on 11^st-15^th April 2008 had delivered several recommendations to urge agenda ’Indonesia free from debt.’ This meeting mandated Dani Setiawan as chairman of Anti Debt Coalition for period 2008 to 2012.

These resulted recommendations rely on facts that development model that lean on foreign debt has caused seizing of Indonesia political and economy sovereignty. Together with conditionalities attached on debt project, they have brought liberalization and privatization on public sectors. Foreign debt also a lay at the roof of seizing of people constitutional rights from constitution that certified them. Foreign debt trap has brought state financial resources drainage out, and it’s just on behalf of fund and duties fulfillment which emerge from foreign debt transaction.

Viewed from social constructivism and ideology, foreign debt able to become instrument for uniting ruling elite class in each borrowing and Lender countries, also from both sides. Alot of foreign debt projects bring direct results in the form of people socio-economic life destruction. Such as displacement, environment destruction, privatization of agrarian resources, human rights violations, woman impoverishment, and corruption. foreign debt is only pursuit of economic growth, not to meet people welfare, neither raise it.

Foreign debt has seized people rights which ought to be fulfilled by state. For decades, big amount of state budget has been being absorbed to pay debt interest Interest An amount paid in remuneration of an investment or received by a lender. Interest is calculated on the amount of the capital invested or borrowed, the duration of the operation and the rate that has been set. and principals which represented for amount 30% in national budget. In National Budget 2008, for example, with sharp rise deficits for 2,1%. This deficits funded by foreign debt for amount IDR 48 trillion and also Obligation released by Indonesia Government for amount IDR 158 trillion and also caused privatization on 44 strategic public companies.

In the midst of withered economic condition, added with increasing unemployment, rate of proverty, and deteriorated health level. Then, decision adding new debt become something contradictive in the face of government effort to pursue people welfare. Therefore we call towards government and whole of Indonesians to push Agenda ’Indonesia Free from Debt’ as a way out from debt trap and to meet and raise people welfare.

Contact:

Dani Setiawan (Chairman of Anti Debt Coalition Indonesia)

Email : danisetia at gmail.com