That's because Japanese debt (up to this point) has been primarily financed by its own citizens, life insurance and pension funds. These are more likely to accept sub-AAA rated bonds and support their own government than external investors are.
http://cache.boston.com/bonzai-fba/Globe_Graphic/2011/07/31/...
[EDIT] Sorry, read the original statement wrong. I was thinking the parent said 70% was held foreign, not vice-versa.