Jakarta – Indonesia's foreign debt has many people seriously worried. Most fear the country may never be able to escape the debt trap it has fallen into, which they say prevents it from using its resources for promoting development and better public welfare.

Among those concerned are 27 members of the House finance commission, who recently formed the House Alliance on Foreign Debt. Introducing a recent study by the International NGO Forum on Indonesian Development and the Institute of Multi-Disciplinary Research, group spokesman Dradjad H. Wibowo said the country was paying more on its current debts than it was receiving in new loans.

Dradjad explained that the amount of debt incurred between 1969 and 2003 stood at $78.4 billion, with the country having paid $56.5 billion in debt principle and interest installments during that period, but only receiving $37.7 billion in new loans. "This means Indonesia's debts should be declining, but in fact our outstanding debt has risen by Rp 745 trillion," he said.

The members of the group say they will now do everything at their disposal as lawmakers to encourage the passage of legislation restricting foreign borrowing, and ensuring better loan and grant management.

Separately, global credit rating agency Standard and Poor's said in its latest report that sovereign borrowing by Asia-Pacific governments is likely to drop by 2.8 percent to $1.75 trillion this year due to a continued slowdown in the pace of issuance amid fiscal consolidation.

This will bring total outstanding short-term and long-term sovereign debt to some $9.4 trillion, an increase of only 5 percent over last year.