Foreign debt repayment to reach $18.5b in 2003: BI

Foreign debt repayment to reach $18.5b in 2003: BI

Dow Jones, Jakarta

Indonesia foreign debt repayments this year are forecast to total
US$18.5 billion, according to central bank statistics obtained by
Dow Jones Newswires Wednesday.

The private sector will repay about $12.1 billion in principal
and interest on its borrowings, while the government must repay
about $6.4 billion, the central bank figures estimate.

Foreign debt repayments remain a weight on Indonesia's capital
account. Dollar demand from Indonesian companies has prevented
the rupiah from extending gains in recent months.

The figures are only a rough estimate to actual capital flows
because of ongoing corporate debt restructuring deals and
unofficial payments linked to smuggling and other illegal trade.

Still, the forecast total foreign debt repayment this year
appears to be much lower than the $30.5 billion the central bank
estimated for last year.

Total debt repayments overseas will total $5.9 billion between
January and March, falling to $5.7 billion, $3.7 billion and $3.2
billion in the subsequent three quarters.

The rupiah was among the world's best performing currencies in
2002, rising about 16 percent due to renewed political stability
under President Megawati Soekarnoputri after three years of
turmoil.

A strong trade surplus has also helped underpin the rupiah's
rise.

Despite falling foreign debt repayments, huge overseas
borrowings remain a negative for the currency this year, analysts
say.

Total government debt is about $130 billion, about 70 percent
of gross domestic product, of which $70 billion is foreign debt.

Since the 1997-98 Asian financial crisis the government has
asked foreign creditors to reschedule its debt repayments three
times and might have to seek a new debt pact next year.

Following is a breakdown of the debt repayment schedule of
foreign debt for 2003, according to central bank data: