Enterpreneurs told to honor debts

Enterpreneurs told to honor debts

JAKARTA (JP): A cabinet minister called yesterday for the
country's private entrepreneurs to honor their domestic and
international debts and service them on time despite their
financial hardships.

Minister of Transmigration Siswono Yudohusodo warned that any
attempt to avoid responsibility would tarnish the country's image
in international financial markets.

"Do not expect the government to be responsible for their
(private sector) debts. (Such an expectation) is not reasonable
at all," said Siswono after meeting with Vice President Try
Sutrisno at Merdeka Selatan Palace.

Siswono was a successful businessman before entering cabinet.
He founded the widely diversified Bangun Tjipta Sarana Group and
led his company for nearly 25 years before his appointment as
state minister for public housing from 1988 to 1993. In 1993 he
was appointed to his current position.

"They must show their maximum efforts to repay their debts, if
necessary by selling their assets. Such measures will maintain
their own credibility," he said.

Minister of Finance Mar'ie Muhammad said in September the
country's foreign debts were US$117 billion. Sixty-five billion
of this amount was owed by the private sector, including both
short-term and long-term debts.

Siswono categorized Indonesian entrepreneurs into four types
according to their commitment to repaying their debts.

"First, there are those who want to repay their debts and are
able to do so. Secondly, those who want to repay their debts but
are not able to. Thirdly, those who are able but not willing to
repay, and the worst (fourth) are those who are neither able nor
willing to repay their debts," he said.

The minister agreed with President Soeharto's recent plan to
offer higher interest rates on U.S. banknotes than are offered
offshore. However, he said, nationals banks should offer much
more attractive incentives to woo money that is being saved
abroad, home.

"If Singapore's banks offer 6.7 percent interest and our banks
only offer 8 percent, I think they (depositors) will prefer to
leave their money there. But if our banks offered 10 percent,
depositors might be interested in bringing their money home," he
said.

Siswono said entrepreneurs were very sensitive about profit
and the security of their investments.

"Some of my Chinese-descent friends told me only gamblers want
to think about profit and ignore safety, and only the ministry of
social services does not think about profit," he said.

The ongoing monetary crisis has prompted calls from various
parties, including President Soeharto himself, for public
austerity. Including in the suggested moves was pay cut for civil
servants or high-ranking officials.

Siswono, however, disagreed with the suggestion to cut the
salaries of civil servants as an effort to overcome the monetary
crisis, saying that their salaries are in fact already
insufficient.

"The one thing that we should do is to carry out
retrenchment," he said. (prb)