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