@article{article_354323, title={The Impact of Government’s Foreign Debt on Fiscal Sustainability of Indonesia}, journal={International Journal of Economics and Financial Issues}, volume={7}, pages={746–751}, year={2017}, author={Mudayen, Yohanes Maria Vianey}, keywords={Government Debt, Economic Growth, Fiscal Sustainability, The Model Simultaneously}, abstract={The aim of the research is to analyze the impact of government’s foreign debt on fiscal sustainability (FS) of Indonesia in 1979-2016. The model used in this research is a simultaneous equation model with the method of two stage least square. The simultaneous equation model regression results indicate that government foreign debt, FS which derives from the reduced-form equation and primary balance has a significant impact on the growth of economy in Indonesia positively. Government foreign debt lag and interest rate of Central Bank of Indonesia have a negative impact and it is significant toward the FS of Indonesia. However, the economic growth which comes from reduced form affect positively and have a significant impact on the FS of Indonesia.}, number={3}, publisher={İlhan ÖZTÜRK}