Cibinong, Polysindo to finalize debt plans<\/p>\n
JAKARTA (JP): Cement producer PT Semen Cibinong and integrated
\ntextile company PT Polysindo Eka Perkasa are expected to finalize
\ntheir debt restructuring programs by the end of this year,
\naccording to the Jakarta Initiative Task Force (JITF).<\/p>\n
JITF chairman Barcelius Ruru said on Thursday that the two
\ncompanies' combined debts totaling about $2 billion were part of
\nthe private debts which were restructured under the agency's
\nassistance.<\/p>\n
He said the agency's target this year was to help restructure
\nbetween $8 billion to $10 billion in corporate foreign debt.<\/p>\n
"The restructuring of these two companies' debts would bring
\nus to our target for the year," Ruru was quoted by Antara as
\nsaying.<\/p>\n
He said he is optimistic the target would be reached because
\nas of July 2000, the total amount of the private debts
\nrestructured with the agency's assistance was $5.2 billion.<\/p>\n
JITF was established by the government in early 1998 to help
\nthe restructuring process of the country's private debts.
\nCompanies which restructure their debts under the agency's
\nfacilitation receive a number of fiscal incentives such as a 30
\npercent tax discount on the debt reduction given by their
\ncreditors.<\/p>\n
According to the World Bank, Indonesia's corporate debts
\nincluding those owed by state-owned enterprises and small to
\nmedium-sized companies totaled $119.7 billion.<\/p>\n
Ruru admitted that the weakening of the rupiah during the past
\nfew weeks has effected the restructuring of debts handled by
\nJITF, but that it would not suspend negotiations.<\/p>\n
The only effect to the fluctuating rupiah was that
\nnegotiations between creditors and debtors has become more
\nheated, he said.<\/p>\n
"We cannot delay restructuring talks even if the rupiah is
\nfluctuating because it would cost a lot more money," he said.
\n(tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cibinong-polysindo-to-finalize-debt-plans-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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