Data on loans urgently needed

The measures to be taken to end the present currency crisis will be known shortly, when the consultations between the government and representatives of the two international institutions (the International Monetary Fund and World Bank) are finished. Many people are optimistic regarding the measures to be taken by the government and the amount of IMF assistance.

However, will this put an end to all our problems? It appears not. Another problem still seems to be bothering the government, and this concerns the size of our private offshore loans and when precisely their payment will be due.

Many people believe that these loans are mostly short-term and that repayment times vary greatly. Therefore, unless it controls the necessary data, the government will always be faced with the problem of having to stand by with sufficient amounts of foreign exchange, U.S. dollars in particular.

The absence of such data also gives rise to rumors about the size of those offshore loans. One certain company, for instance, is believed to be able to survive only until the end of this year because of its loan burden, which is said to amount to hundreds of millions of U.S. dollars. Another company is rumored to have already defaulted on its payments. The government has summoned a number of company representatives to discuss this problem. However, it remains doubtful whether the authorities now indeed have access to all these data.

Thus, our monetary situation and the rate of the rupiah are still vulnerable to fluctuation. The size of the IMF aid packet will of course increase the government's capability to satisfy the public's need for U.S. dollars when needed. But the experience that has been gained so far may serve to teach us that a control of field data is imperative. After all, how could one possibly hope to win a battle if one doesn't even have a field map.

-- Bisnis Indonesia, Jakarta