Govt debts drop to $61.3 billion<\/p>\n
JAKARTA (JP): The government's outstanding external debts
\ndropped to US$61.3 billion last September from $64 billion in
\nMay, Minister of Finance Mar'ie Muhammad said here yesterday.<\/p>\n
He told a hearing with the Budgetary Commission of the House
\nof Representatives (DPR) that most of the loans were provided
\nunder either bilateral or multilateral arrangements.<\/p>\n
He said that of the outstanding debts, $23.8 billion were made
\nunder bilateral arrangements, carrying an average interest rate
\nof 2 percent per annum.<\/p>\n
The other $20.5 billion were made under multilateral deals,
\ncarrying an average interest rate of 7.07 percent per annum, the
\nminister said.<\/p>\n
He said another $14.2 billion of the external debts were
\nprovided in the form of credit exports, $1.6 billion in
\ncommercial loans and the remaining $1.2 billion in leasing deals.<\/p>\n
\"The interest rates of these kinds of loans range from 6.5
\npercent to 6.8 percent per annum,\" he said.<\/p>\n
The minister and the commission were discussing the
\ngovernment's budget plan for the 1996\/1997 fiscal year at
\nyesterday's hearing, which will resume today and will last until
\nFriday.<\/p>\n
Mar'ie said the government would set aside Rp 19.93 trillion
\n(US$8.7 billion) for the repayment of the loans, including
\ninterest, in the 1996\/1997 fiscal year beginning in April.<\/p>\n
The Rp 19.93 trillion repayments will consist of Rp 12.11
\ntrillion in debt principals and another Rp 7.81 trillion in
\ninterest, he said.<\/p>\n
The loan amortization will account for 22 percent of the
\ngovernment's projected total spending of Rp 90.61 trillion in the
\n1996\/1997 fiscal year.<\/p>\n
Mar'ie told the House members that government loan repayments
\n(both for principal and interest) are projected to reach $7.51
\nbillion in 1997\/1998, $7.54 million in 1997\/1998 and $7.38
\nbillion in 1999\/2000.<\/p>\n
More privatizations<\/p>\n
At yesterday's hearing, the minister also told the House
\nmembers about the government's plan to privatize three state-
\nowned companies -- PT Krakatau Steel, Bank Negara Indonesia and
\nPT Jasa Marga -- later this year.<\/p>\n
The minister said the privatization of the three companies
\nwould be carried out through the sales of portions of their
\nshares to the public.<\/p>\n
\"The privatization drive of the three companies is now still
\nundergoing final preparations,\" he said.<\/p>\n
Mar'ie, however, did not disclose whether the three companies
\nwould also be listed on international stock exchanges, like PT
\nIndosat, PT Telkom and PT Tambang Timah.<\/p>\n
Krakatau Steel, the country's largest steel producer, boosted
\nits profits to Rp 240 billion last year from Rp 58 billion in
\n1994.<\/p>\n
The company's future profits are expected to increase further
\nin line with the completion of its expansion program.<\/p>\n
Bank Negara Indonesia and Jasa Marga reported sound financial
\nperformances last year. The bank's profits rose by 31.3 percent
\nto Rp 405.8 billion last year from Rp 309.2 billion in 1994.<\/p>\n
There is no up-to-date information on the financial
\nperformance of Jasa Marga, but according to last year's data, its
\nprofits were estimated to increase to Rp 170 billion last year
\nfrom Rp 150 billion in 1994.<\/p>\n
Mar'ie said that the public offering of the three companies'
\nshares would include the divestment of the government's shares
\nbesides the issuance of new shares.<\/p>\n
Proceeds from the sales of the government's shares in Indosat,
\nTelkom and Tambang Timah have been used to speed up the repayment
\nof debts carrying interest rates of above 10 percent per annum,.<\/p>\n
\"Around $1.04 billion of the high-interest loans have been so
\nfar paid by the proceeds of the sales of the government's shares
\nin the three firms,\" he said.<\/p>\n
The minister said that the government would settle the
\nremaining $1.1 billion in the coming years.(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-debts-drop-to-613-billion-1447893297",
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