Japanese lenders 'flexible' over loans<\/p>\n
JAKARTA (JP): Japanese creditors are offering flexibility to
\nhelp Indonesian borrowers overcome their increasing debt problems
\ncaused by the steady appreciation of the yen.<\/p>\n
\"I think there is flexibility to eliminate some individual
\nproblems. And we have to solve them on a case by case basis,\"
\nKenji Kawakatsu, vice chairman of the Japan Federation of
\nEconomic Organizations (Keidanren), said here yesterday.<\/p>\n
Kawakatsu, also senior advisor to Sanwa Bank, Ltd.,
\nacknowledged that the surge of the yen value against other major
\ncurrencies could not be cured by offering short-term lending.<\/p>\n
\"That's a totally different matter,\" Kawakatsu said in a press
\nconference headed by Keidanren's chairman, Shoichiro Toyoda.
\nYesterday the Keidanren delegation ended its three-day visit to
\nIndonesia.<\/p>\n
Kawakatsu suggested that Indonesian borrowers negotiate with
\ntheir lenders in Japan whenever they face debt servicing
\nproblems.<\/p>\n
Economist Dorodjatun Kuntjoro-Jakti suggested last month that
\nIndonesia draw on fast-disbursing, soft-term loans to accelerate
\nthe repayment of its yen-denominated debts, especially those with
\nheavier terms or those due for repayment.<\/p>\n
The yen has appreciated by 23 percent against the Indonesian
\nrupiah since early January. Some 40 percent of Indonesia's
\nforeign debt of about US$87.6 billion -- of which $58.6 billion
\nis owed by the government -- is in yen.<\/p>\n
Indonesia's private sector debts in yen denomination are
\nexpected to exceed the figures compiled by the government due to
\nhigh private investment from Japan. As of last December, Japan
\nwas still the largest investor in Indonesia, with 20 percent of
\nthe country's foreign investments, or US$18.6 billion.<\/p>\n
Japan said last week, however, that it had no plans to ease
\nthe burden of its Asian borrowers, including Indonesia.<\/p>\n
During their three-day visit here, the Keidanren delegates met
\nwith President Soeharto, Vice President Try Sutrisno, a number of
\nministers and executives from the Indonesian Chamber of Commerce
\nand Industry.<\/p>\n
Concern<\/p>\n
After meeting with Soeharto yesterday, Toyoda, who led the
\ndelegation, said that the President expressed his concern with
\nthe yen appreciation.<\/p>\n
\"President Soeharto told us that because of the yen
\nappreciation, Indonesia is suffering from its impact. And we
\nreplied that Japan is taking counter measures,\" Toyoda said at
\nyesterday's press conference.<\/p>\n
Toyoda, also chairman of Toyota Motor Corp., voiced hope that
\nthe yen would be more stable on international currency markets in
\nresponse to yen-stabilizing measures taken by Japan last week.<\/p>\n
Last Friday, Japan announced its economic stimulus package,
\nincluding a broad outline for quicker deregulation, more imports
\nand greater domestic demand.<\/p>\n
Indonesian Minister of Industry Tunky Ariwibowo told
\njournalists that President Soeharto asked for Keidanren's help in
\nopening up Japan's market to Indonesian products. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japanese-lenders-flexible-over-loans-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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