Enterpreneurs told to honor debts<\/p>\n
JAKARTA (JP): A cabinet minister called yesterday for the
\ncountry's private entrepreneurs to honor their domestic and
\ninternational debts and service them on time despite their
\nfinancial hardships.<\/p>\n
Minister of Transmigration Siswono Yudohusodo warned that any
\nattempt to avoid responsibility would tarnish the country's image
\nin international financial markets.<\/p>\n
\"Do not expect the government to be responsible for their
\n(private sector) debts. (Such an expectation) is not reasonable
\nat all,\" said Siswono after meeting with Vice President Try
\nSutrisno at Merdeka Selatan Palace.<\/p>\n
Siswono was a successful businessman before entering cabinet.
\nHe founded the widely diversified Bangun Tjipta Sarana Group and
\nled his company for nearly 25 years before his appointment as
\nstate minister for public housing from 1988 to 1993. In 1993 he
\nwas appointed to his current position.<\/p>\n
\"They must show their maximum efforts to repay their debts, if
\nnecessary by selling their assets. Such measures will maintain
\ntheir own credibility,\" he said.<\/p>\n
Minister of Finance Mar'ie Muhammad said in September the
\ncountry's foreign debts were US$117 billion. Sixty-five billion
\nof this amount was owed by the private sector, including both
\nshort-term and long-term debts.<\/p>\n
Siswono categorized Indonesian entrepreneurs into four types
\naccording to their commitment to repaying their debts.<\/p>\n
\"First, there are those who want to repay their debts and are
\nable to do so. Secondly, those who want to repay their debts but
\nare not able to. Thirdly, those who are able but not willing to
\nrepay, and the worst (fourth) are those who are neither able nor
\nwilling to repay their debts,\" he said.<\/p>\n
The minister agreed with President Soeharto's recent plan to
\noffer higher interest rates on U.S. banknotes than are offered
\noffshore. However, he said, nationals banks should offer much
\nmore attractive incentives to woo money that is being saved
\nabroad, home.<\/p>\n
\"If Singapore's banks offer 6.7 percent interest and our banks
\nonly offer 8 percent, I think they (depositors) will prefer to
\nleave their money there. But if our banks offered 10 percent,
\ndepositors might be interested in bringing their money home,\" he
\nsaid.<\/p>\n
Siswono said entrepreneurs were very sensitive about profit
\nand the security of their investments.<\/p>\n
\"Some of my Chinese-descent friends told me only gamblers want
\nto think about profit and ignore safety, and only the ministry of
\nsocial services does not think about profit,\" he said.<\/p>\n
The ongoing monetary crisis has prompted calls from various
\nparties, including President Soeharto himself, for public
\nausterity. Including in the suggested moves was pay cut for civil
\nservants or high-ranking officials.<\/p>\n
Siswono, however, disagreed with the suggestion to cut the
\nsalaries of civil servants as an effort to overcome the monetary
\ncrisis, saying that their salaries are in fact already
\ninsufficient.<\/p>\n
\"The one thing that we should do is to carry out
\nretrenchment,\" he said. (prb)<\/p>",
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