RI seeks bilateral talks with U.S. to settle debt<\/p>\n
JAKARTA (JP): Indonesia is seeking bilateral talks with the
\nUnited States government to help solve the country's private-
\nsector debt problem with American creditors, Indonesian
\nambassador to the U.S. Dorodjatun Kuntjorodjakti said on Monday.<\/p>\n
Dorodjatun said that although the U.S. ranked only third in
\nterms of the amount of commercial loans provided to the country,
\nany debt solution with American creditors would be crucial for
\nIndonesia to reach a comprehensive settlement to its commercial
\noverseas debt.<\/p>\n
\"We believe what the U.S. starts will be followed (by other
\ncountries),\" Dorodjatun told reporters at the Bina Graha
\npresidential office after a meeting with President Abdurrahman
\nWahid.<\/p>\n
Dorodjatun said Indonesia had US$80 billion in private-sector
\nexternal debts, with Japan and Europe being the largest and
\nsecond largest creditors.<\/p>\n
Dorodjatun said he expected bilateral talks could be held by
\nend of January next year.<\/p>\n
He envisages the bilateral talks would be held by two senior
\nstate officials from both countries. Two fully trusted by
\nIndonesian debtors and two by American debtors.<\/p>\n
\"The two officials, acting like arbiters, will negotiate in a
\nroom, maybe for hours, to reach a final and binding solution,\"
\nDorodjatun said.<\/p>\n
He said he had talked with the President and Vice President
\nMegawati Soekarnoputri, almost all ministers and the private
\nsector about the plan.<\/p>\n
\"This is exactly what Gus Dur wants,\" Dorodjatun said,
\nreferring to the President by his nickname.<\/p>\n
Indonesia reached an agreement with European creditors to
\nsettle the country's commercial debt in a meeting in Frankfurt in
\nJune 1998.<\/p>\n
Following the agreement, the government set up the Indonesian
\nDebt Restructuring Agency (INDRA) in August 1998 to facilitate
\npayment of the country's private sector external debts.<\/p>\n
Under the program, debtors joining the scheme must first seek
\napproval from their lenders to reschedule the debts over eight
\nyears, including a three-year grace period.<\/p>\n
Debtors then make monthly installments in rupiah, based on an
\nINDRA-set conversion rate and INDRA pays the lenders in dollars.
\nPayment only covers interest during the grace period.<\/p>\n
Dorodjatun also said national flag carrier PT Garuda Indonesia
\nwas seeking to lease more aircraft.<\/p>\n
He said Garuda remains entitled to further aircraft financing
\nfrom the U.S. Export-Import Bank even after borrowings of some
\n$2.9 billion.<\/p>\n
The ambassador quoted Garuda president director Abdul Gani as
\nsaying the airline requires more planes to meet increasing
\ndemand, with Garuda's current load factor at 87 percent.
\n(jsk\/prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-seeks-bilateral-talks-with-us-to-settle-debt-1447893297",
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"sponsor": "Okusi Associates",
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