Foreign firms to repay $7b debt

Foreign firms to repay $7b debt

JAKARTA: Offshore debt repayment by foreign companies in
Indonesia is expected to rise to US$7 billion next year from
around $5 billion this year, Bank Indonesia said on Thursday.

The nation's central bank said that the increase indicates
improving performance of these companies after the 1997-98 Asian
financial crisis forced them to reschedule debt repayments.

"The improving economic conditions and investment climate are
expected to further stimulate financial capability of foreign
companies here in 2004 (to repay their debts)," the central bank
said in a statement.

Bank Indonesia said that net capital outflows from these
companies are expected to rise to $3.7 billion in 2004 from an
expected $1 billion this year.--Dow Jones