Indonesia may restrict corporate foreign debt

JAKARTA: Indonesia's government and central bank are considering regulations to limit foreign debt exposure by corporations and banks to protect Southeast Asia's largest economy if a change in global risk sentiment weakens the rupiah , the country's finance minister, Agus Martowardojo, said on Wednesday.

Low interest rates in developed economies have prompted Indonesian companies to raise more dollar debt. Bank Indonesia data shows local companies had total foreign debt of $4.18 billion in the first half of this year, nearly double the total for 2010.

Copyright Reuters, 2011